"Cash Out" refers to the refinancing of a loan where the borrowers will borrow to acquire liquid funds from the equity in their home. For example, if a home is appraised at $100,000 and the borrower's outstanding mortgage loan balance 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 about $20,000 cash out to the borrowers.
By cashing out on your home, you can obtain cash from the equity in your home to pay off debts or upcoming expenses. The refinance transaction can also provide you with a better interest rate that will save on your monthly mortgage payments during the loan. And it may all be tax-deductible.
If you are looking for this type of refinancing, R.H.Cooper,Ltd., Home Loans can find a program best suited to your financial needs. We offer cash out programs for Owner-occupied homes and Non-owner occupied homes, with low, affordable rates.