Cash Out Refinance

Cash Out Refinance

Cash Out Refinance

A conventional mortgage cash out refinance is the refinancing of a loan where the borrowers will borrow money on their own home. If a home is appraised at $100,000 and the borrower’s outstanding mortgage loan is $60,000, it is possible to enter into an 80% cash-out refinance transaction for a loan of $80,000 (80% of $100,000). The new mortgage of $80,000 will pay off the $60,000 loan and leave $20,000 cash-out to the borrowers. With an FHA mortgage cash out refinance you are allowed to borrow up to 85% of the value.

What are the benefits?

With a cash out refinance you can access the equity in of your own home to pay off debts or upcoming expenses. You can use the funds to pay off debt, put your kids through college, home renovationas and much more. The refinance transaction can also provide you with a better mortgage loan interest rate that will save on your monthly mortgage payments during the loan.

How can we help?

If you are looking to do a cash out refinance, Noreast Mortgage Services can find the best program to meet your financial needs. We offer cash-out programs for owner-occupied homes and non-owner-occupied homes, with low, affordable rates. Call us today for a free prequalification.

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