Cash Out Refinance
Cashing out refers to the refinancing of a loan where the borrowers will borrow money on their own home. If a home is appraised at $400,000 and the borrower's outstanding mortgage loan is $240,000, it is possible to enter into an 80% cash-out refinance transaction for a loan of $320,000 (80% of $400,000). The new mortgage of $320,000 will pay off the $240,000 loan and leave $80,000 cash-out to the borrowers.
What are the benefits?
By refinancing, you can obtain cash out to pay off debts, upcoming expenses or funds for the purchase of another property. 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. And the interest may be tax-deductible.
How can we help?
If you are looking for this type of refinancing, Burt P. Augustensen Mortgages can find a program suited to your financial needs. We offer cash-out programs for Owner-occupied homes and Non-owner occupied homes, with low, affordable rates.