If you currently have a Mortgage Loan, you have options for a cash out mortgage refinance that you may not know about. Your cash out refinance loan options can save you money in a variety of ways, from getting rid of credit cards to making improvements to your home that increase its value without adding to your debt.
We’ll go over what a cash out refinance is, the pros of a cash out refinance loan, cash out loan requirements, and how it can help you accomplish your financial goals.
What is a Cash Out Refinance?
A cash out refinance uses the equity you have built up in your home to give you back cash.
If you have a $200,000 home and a balance of $100,000 left on your current mortgage Loan, you could get back up to $65,000 in cash, putting your new loan balance at $165,000, but putting your payments under one, low-interest payment every month.
You should consider a cash out refinance if you are a homeowner with equity, have a high interest rate (compared to today’s lower rates), or have a lot of high-interest debt like credit cards. Your lower interest cash-out refinance can solve a lot of problems if you’re in these situations.
Cash Out Mortgage Refinance Requirements
To refinance your mortgage and take cash out, you do have to hit some benchmarks and requirements. Most lenders keep to these basic requirements:
- Higher than average credit score
- At least a 75% loan-to-value, or LTV ratio.
- Debt-to-income ratio under 41%
- No late payments for at least 6 months, not more than one late payment for 12 months
- Single family, owner occupied property
The bottom line on the cash out mortgage refinance is that if you have a need for cash out, have credit card debt or other high-interest debt, and have built up equity in your home over the years, a cash out refinance will help you out. You can use the equity in your home to put the money you need in your pocket.
Call The Home Loan Expert Team in St. Louis at (314) 781-9700, Chicago at (773) 770-4727, Indianapolis at (317) 550-1515, Nashville at (615) 810-8555 or Birmingham, AL at (205)721-7656. You can always apply online at hero.loan for your VA Loan, and www.thehomeloanexpert.com for your other mortgage needs, and we’re also open on Saturdays and will come to you to help close your loan. We work hard to make it easy on you. Nobody gets lower rates on better loans than The Home Loan Expert, Ryan Kelley, why go anywhere else?