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
$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?
By cashing out on your home, you can obtain cash on the value of your
own home to pay off debts or upcoming expenses. 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 it's tax-deductible.
How can we help?
If you are looking for this type of
refinancing, Fidelity Guaranty Funding 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.
