A cash-out refinance is a mortgage refinance option where the borrower takes out a new mortgage for more than the existing loan balance. The excess funds are received in cash [hence the term cash out refinance], which can be used for various purposes.

In a rate and term refinance, the goal is to obtain a better interest rate or change the loan term without taking additional cash. A cash-out refinance, on the other hand, involves borrowing more than the existing loan balance and receiving the excess amount in cash.

Cash-out funds can be used for various purposes such as home improvements, debt consolidation, educational expenses, investment, or any other financial needs.

The timeframe can vary, but it typically takes 3 weeks to complete a cash-out refinance. The process involves application, appraisal, underwriting, and closing. Call our Toll Free # 1-877.466.1211 to get started.

The amount of equity required can vary by lender, but generally, you'll need a significant amount of equity in your home. Lenders typically allow cash-out refinances up to 80-85% of the home's appraised value.

Benefits can include accessing cash for major expenses, consolidating high-interest debt into a lower- interest mortgage, and potentially improving your overall financial situation.

Interest rates for cash-out refinances may be slightly higher than those for rate and term refinances. The specific rate will depend on factors such as your credit score, loan-to-value ratio, and market conditions.

Generally, cash-out refinances are available for conventional, FHA, and VA mortgages. However, eligibility requirements may vary, and not all lenders offer cash-out refinancing for all loan types.