What is a "Cash Out" Home Refinance Loan like in 2021? Here is an example!

What is a "Cash Out" Home Refinance Loan?

This is a process where Dan Cassel and the Trinity Mortgage Broker team refinance your existing California Real Estate Loan with a New Home Loan for more than you currently owe on your house. It presumes you have equity built up in your California home. The spread is your "Cash Out".

This "Cash Out" goes to you and the use of funds is decided by the Borrower. You can spend it on home improvements, debt restructure, or use the proceeds for financial planning, retirement. It is your decision and the new lenders if they will allow a Cash Out loan. They will often seek an understanding on the use of funds and seek borrowers who have good credit, lot's of Home Equity and earnings stability. This loan is for Salaried or Self Employed Borrowers.

Traditional Refinancing, or the "Restructure" of your Mortgage in contrast, replaces your existing mortgage or mortgages with a new one for the same balance. These can be a bit easier and less expensive to obtain than a new Cash Out Loan, especially with today's low rates and offer borrowers a solution if you do not qualify for a cash out loan.

Today's typical Real Estate Cash Out Loan example:

Say your home is valued at $800,000 and your mortgage balances are a 1st TD of $350,000, and a HELOC of 50K, this instance shows you have a total equity position in your home in this example of $400,000. Let’s say you want to now spend $80,000 on further renovations.

You really must focus on the cost of money and loan Documentation; however, in this example you can refinance your total Real Estate Mortgage loan into ONE new First TD Mortgage loan to 75% LTV (Loan to value), or a new loan of 600k and remove up to 200 K in cash at closing, market conditions dependent and OAC..

With Real Estate Equity so high and money costs currently so low as accelerate thru Q2 of 2021, this current COVID loan environment it a good time to explore your California Home Loan Cash Out loan options.

To learn more phone Dan Cassel and the Trinity Mortgage Loan team at 866-310-1112