CASH OUT REFINANCE
Cashing out refers to the refinancing of a loan where the borrowers will borrow more money on their home than the payoff and closing fees. 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 90% cash-out refinance transaction for a loan of $90,000 (90% of $100,000). The new mortgage of $90,000 will pay off the $60,000 loan and leave $30,000 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 in most cases it's tax-deductible. In addition, if you to use the money pay off debt you are saving those payments or if you use the money for other purposes you don't have to put that new debt on a credit card or take the money out of savings.
How can we help?
If you are looking for this type of refinancing,Affordable Interest Mortgage div of Gold Star can find a program suited to your financial needs. We offer cash-out programs for Owner-occupied homes, either Conventional, FHA/VA, Jumbo or Reverse Mortgages.