Cash Out Refinance Loans

Cash out refinance loans serve a dual purpose, which makes them one of the most versatile forms of mortgage refinancing. As with other refinance loans, cash out refinancing allows homeowners to secure a more affordable rate on their mortgages. Additionally, cash out refinance loans give homeowners access to extra cash at a very low interest rate. If you have a major life expense on the horizon, you might want to refinance with cash out to handle the expense without overly costly debt.

How Refinance with Cash Out Loans Work

For the most part, cash out refinance loans function in much the same way as a traditional refinancing loan. To refinance, a homeowner takes out a new mortgage to pay off his/her current mortgage and obtain a lower rate. Cash out refinancing applies that same general process, but instead of taking out a new mortgage with the same balance as the existing mortgage, the homeowner takes out a refinancing loan with a larger balance. The lender then gives the borrower the difference between the old and new mortgage balances to the borrower in cash to spend however he/she wishes.

Is Cash Out Refinancing Right for You?

To qualify for cash out refinance loans, you must owe less on your mortgage than the current appraisal value of your home. With most lenders, the minimum difference between the outstanding mortgage balance and the value of the home is $20,000. In other words, a homeowner must have at least $20,000 of home equity to refinance with cash out. For example, let’s say you owe $90,000 on your current mortgage, and your home is worth $150,000. That means you have $60,000 of equity. You could take advantage of a cash out refinance loan for $120,000, for instance, and take the $30,000 difference in cash.

Benefits of the Cash Out Option

As with all refinancing tools, cash out refinance will almost always give you a more affordable mortgage interest rate. On top of the improved rate, you will receive a substantial amount of cash at a competitively low interest rate to spend however you please. The rate you receive on this cash loan from cash out refinancing will most likely be lower than any other loan available to you, including credit cards, student loans, and personal loans. The cash can be applied toward major expenses like college tuition, home additions or renovations, auto purchases, or debt consolidation.

Find a Cash Out Refinance Lender

The first step to refinance with cash out is to request free quotes on cash out loan interest rates using the electronic form provided at the top of the page. As soon as you submit the completed form, you will see up to five no-cost quotes on cash out refinancing loans from the most respected and experienced lenders in the industry. Get the mortgage rate you want and the cash you need by completing the form now.