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Cash Out Refinancing

Cash out refinance are usually tax-deductible. With Cash-out Refinance mortgages, borrowers receive cash out from the increased value of their home to use for debt consolidation or any other purpose.

Our Cash-out Refinance mortgages offer flexibility and variety so you can meet a diverse range of borrower needs; reducing a rate and monthly payment or paying off a junior lien not used in its entirety to acquire the subject property; paying for home improvements; or paying off a leasehold interest.

Plus, all related closing costs, financing costs and prepaid items can be rolled into the new loan amount, further maximizing your borrower's cash flow potential.

In addition, cash-out refinance mortgage allows borrowers in special circumstances to use the proceeds of the refinance transaction to buy out the equity of a co-owner. With the special purpose cash-out refinance mortgage in your product line, you can now offer your borrowers another option to meet their specific needs.

Cash-Out Refinance Advantage

• Your existing mortgage is refinanced for a higher overall amount using some of the accumulated equity in your home.
• One loan and one loan payment
• Choose from fixed or variable interest rate loans.
• Get cash and spread the payments out over a longer term.
• Lower interest rate than home equity financing may be available.

• Receive cash out to consolidate debt or for any other purpose
• Pay off junior liens, including HELOCs.
• Pay off a purchase money junior lien or a leasehold interest
• pay for home improvements or buy out the equity of an ex-spouse, joint heir or joint devisee
• Eliminate up front costs by rolling all closing costs, financing costs and prepaid items into the new loan amount

• Meet the needs of more refinance borrowers looking to leverage their home equity for a variety of purposes
• Improve efficiencies using Loan Prospector technology
• Retain more of your customer base in refinance markets
• Meet the needs of borrowers with special circumstances using the special purpose cash-out refinance option

Cash-out refinancing explained

is a replacement of your first mortgage. The interest rate on a cash-out refinancing is usually, but not always, lower interest rate than a home equity loan.

Finally, it doesn't make sense to refinance a higher amount at a higher rate. If your current mortgage is at a lower interest rate than you could get now by refinancing, it's probably better to get a home equity loan.

Is cash-out refinancing right for me?

It depends on how much you would save each month and what you want to spend the money on.

When you decide whether to do the cash-out refinancing option, keep in mind that you'll have to pay private mortgage insurance if you end up borrowing more than 80% of your home's value. If you would have to pay PMI, it might be cheaper to take out a home equity loan.