Cash out refers to the refinancing of a loan where the borrowers receive additional cash after the existing mortgage and expenses are paid off. If a home is appraised at $400,000 and a borrower’s outstanding mortgage loan is $200,000, a new loan of $300,000 will yield the borrower $100,000 ‘cash out’.
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 may also provide you with a low 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, Cornerstone Mortgage, LLC can find a program suited to your financial needs and goals. We offer cash-out programs for owner-occupied homes, non-owner occupied homes, and no income verification with low affordable rates.