LET US HELP YOU
UNDERSTAND CASH OUT LOANS FOR HOME LOAN REFINANCING
Cash Out Loans in California
A cash out loan in CA, or also known as cash out mortgage refinancing gives homeowners the option to switch out their old mortgage for a new one with a larger amount owned than the initial home's mortgage. This is often the case when homeowners are in need of cash.
WHAT IS A CASH OUT LOAN?
During a cash out loan for refinancing your home's mortgage, the new mortgage is higher than the previous giving the homeowners cash for the difference of the mortgage. It is likely the interest rates will be higher on a cash out refinancing loan due to the higher loan amount when choosing to go this route but the cash advantages can be extremely beneficial for the borrowers.
A cash out loan gives the borrowers standard refinancing of their mortgage along with additional beneficial modifications to the new loan. A cash out loan can be extremely beneficial for homeowners when interest rates are low or when they are in need of extra cash during a period of crisis, such as the recent COVID-19 pandemic.
What are the Requirements for Obtaining a Cash Out Loan?
The requirements can vary depending on the mortgage lender who is providing the cash out loan. A few requirements Amerifund Corporation & Realty looks for when securing a cash out loan for the borrowers include but are not limited to the following.
- A credit score of at least 620
- Equity in your home
- A DTI (debt-to-income ratio) of less than 50%
WE'RE HERE FOR YOU
We take pride in providing you with excellent service and appreciate the opportunity to assist you with all your real estate and mortgage needs.