13 Frequently Asked Cash-Out Refinance Questions Answered
Date Published: April 22, 2021
Read Time:
4 Minutes
Topics: Refinance, Cash-Out Refinance, Personal Finances
If you’re looking to refinance† your home you have probably come across the term “cash-out refinance.” But what is it? In the simplest terms, cash-out refinance allows the borrower to access a portion of the equity accumulated in the home as cash.
While the concept of a cash-out refi may be simple, there are aspects of the process that require a deeper understanding. To determine if a cash-out refinance is right for you, let’s break down some of our most frequently asked questions.
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References:
1Source: Cash-Out Refinance Guide | Requirements and Rates for 2024 (themortgagereports.com)
Disclosures
† By refinancing an existing loan, the total finance charges may be higher over the life of the loan.
††Our Home Equity Line of Credit is available for owner-occupied homes. At closing, we’ll draw 75% of your approved credit limit, minus any origination fees. Additional draws can be requested 90 days after closing during the first three years, up to your available limit. Rates will vary based on factors like your credit score and your total loan-to-value ratio. Loan amounts range from $50,000 to $350,000. To determine your home’s value, we may use independent data sources or automated valuation models, and in some cases, an appraisal may be required. This product is only available for eligible borrowers, certain property types, and in select states. Pre-approval is based on the information you provide and is subject to verification and full underwriting review. Not all applicants will qualify.
††† The Newrez Home Equity Loan program allows you to keep your current mortgage rate unchanged while taking out a second mortgage at current market rates. The minimum credit score for this program is 660, and it is only available on properties with one existing mortgage lien. Loan amounts must meet program minimums and maximums, and loans are subject to maximum loan-to-value limits as well as other underwriting rules. Geographic restrictions apply.
Mortgage rates, lending guidelines, and available loan programs change frequently. While the educational concepts in this article may still be helpful, some examples, statistics, recommendations, or product information may no longer be current.
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