FHA CASH OUT REFINANCE
For example, 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.
What are the benefits of an FHA Cash Out refinance?
By cashing out on your home, you can obtain cash on the value of your own home to pay off existing debts (like credits cards) or pay for upcoming expenses (college), or even get the money to update or repair your home (new siding, new roof).
The refinance may also provide you with a lower interest rate too if rates are lower today than when you initially got you loan.
CASH OUT IS NOT A HELOC (home equity loan)
While you are taking cash out, a cash out refinance is different from a Home Equity Loan (HELOC). A home equity loan is a new smaller loan. You leave your existing mortgage alone. The cash out refinance you pay off your existing mortgage AND take additional cash in one new mortgage.
CASH OUT With an FHA Loan To 85% of the Homes Value
FHA loans allow you to take cash out up to 85% of the appraised value of your home. This is a huge benefit over conventional loans, which only allow you to cash out to 80% of the value. You can you the money for anything you wish. There are no restrictions.
REFINANCE Today - Let Us Help
If you are looking for this type of refinancing, Mortgages Unlimited can help make it a new day in your life with a program suited to your financial needs. We offer cash-out programs for both owner-occupied homes, and non-owner occupied homes with VA Loans, FHA Loans, or standard Conventional loans.
Contact our Minnesota, Wisconsin, or South Dakota property Loan Experts today at (651) 552-3681, or simply get started with a quick online FHA Cash Out Refinance Loan Application.