What loan terms come with each option?
The 30 year fixed is the most common term for a cash out refinance. The rate and payments will stay the same for over the 30 year amortization. This type of transaction is popular because of the security it provides with the least amount of risk. But as mortgage rates have dropped since 2013, the HELOC has become more and more popular because it allows a borrower to access the equity in their home without touching the rate on the primary mortgage. But, before making that commitment to either loan, make sure you are aware of the the long term consequences.
Cash Out Products: FIXED
Cash Out Products: ARM's
What is the rate on the current loan?
A cash out refinance is a loan taken on a property already owned where the new loan amount is higher than the existing loan. The new loan will pay off the existing lien, if any, and give the owner cash to use at their leisure. The limits on the amount of cash received is based off of a new appraisal and the lender's maximum limits. There are 3 ways to access money from your house:
There are several factors that can determine which loan makes sense.
How much equity do you have?
How much cash do you need?
How soon you want to use the money?
How soon you can pay it back?
Contact us to see if a cash out refinance is right for you.