Is a Cash-Out Refinance an option for me?

A cash out refinance is the process of turning the equity in your home into cash. In simple math terms say you purchase your house for $100,000. Fast forward five years later your neighborhood is a popular place to live and the current housing market has increased and the value of your home is up to $200,000. The difference in the original value of your home has now increased $100,000 in equity.

Purchase price of your home 5 years ago: $100,000

Current Market Value of your home: <$200,000>

$100,000 Equity!

In order to take the equity or get cash out you must refinance your current mortgage. There is no minimum amount that you can take. It all depends on what you would like to use the money for. You can use the money for anything. The bank does not need to know why you want the cash. They just want to be sure that you will be able to make the payment on the new loan. Together we can discuss the interest rates, the amount you would like to cash out, length of the loan, and a comfortable payment amount. Once approved the bank will give you a check for the equity and you can use the funds for paying off debt, renovations, additions to your home, installation of green technology, buying a car, paying tuition, starting a business, paying for a wedding, and or a dream vacation, pretty much anything you can imagine.

Here is an example:

You purchased a home for $200,000 at a 6% interest rate. Current Market Value: $400,000

You have paid: <$50,000>

$150,000 Remaining Balance of your current Mortgage

Current Market Value: $400,000

Remaining Balance of your current Mortgage:$150,000

$250,000 Equity

Today you would like to purchase a new Tesla for $20,000 and pay off some high interest credit obligations.

You can refinance for $170,000 to get the Tesla (RBM 150k +20k) or for the $250,000 in equity all at a lower interest rate and save hundreds of dollars per month in payments. As a mortgage loan originator I can discuss all the possible pathways and scenarios in order to get you to your financial dreams and goals. No question is too hard to answer, and there are no dumb questions. My job is listen to you and help you get the best possible mortgage with the terms and rates that best fit your needs.

Call Jason at 925-989-2790

I look forward to speaking with you and building a mortgage of your dreams.