The Truth About Cash Out!

Mortgage options 2 Minutes

So much misinformation out there, and I can’t even be more specific, but it’s starting to get really annoying listening to even fellow loan officers say how much harder or more expensive, or impossible it is.  So this is to dispel all those myths!

MYTHS AND LEGENDS:

  1. It’s SO MUCH harder – well, this has a little ounce of truth, and a pound of NOT! Any mortgage is challenging and requires some level of paperwork.  When it comes to cash out, the lender usually requires less loan to value (you can’t borrow as much) and wants to know what the cash out is for.  That’s covered with a payoff statement or recent statement, etc. for debt consolidation and for home improvements, there’s usually a letter of explanation (or we recommend a renovation loan – Remodel or rehab loan?).  The issue is none of that really makes it HARDER.
  2. It’s SO MUCH more expensive – well, this is slightly true in rate, but other than that, there is simply no other issue with that.  So let’s say that we have the lowest or closest to lowest rates ever, and you pay a little bit more (.5-1%) for cash out, or more loan costs, etc., it’s still better than 90% of humankind has ever had.  Sometimes we simply get spoiled into thinking that we all deserve the lowest rates in history and no other, but the reality is that a little bit more and cash out is still a very good rate in recent history.
  3. It’s IMPOSSIBLE.  This one is slightly funny, as lenders back away from risk, getting cash out on your home (as some refer to it, going back to the piggy bank over and over), could be perceived as more risky.  But impossible, no.  It adds another layer of requirements, as mentioned previously, but definitely not impossible.

So what can you get cash out on?  Your home, a second home, and an investment property (Get some cash out on that rental property mortgage refinance!)!  So don’t let the naysayers and lots of red tape get in your way of debt consolidation, home improvements, or whatever else you plan to do with the cash out refinance (Lots of reasons to refinance).  Come see your favorite banker: Your favorite banker…

Published by coreyvandenberg

After 20+ years working with businesses and 18+ years helping businesses and individuals exceed their financial goals, I have decided to concentrate on the most rewarding job: finance home purchases, remodels, and refinance. I can help you with more options and technology to help my customers and real estate partners. Now licensed to serve the entire states of Florida, Georgia, Illinois, Kentucky, Ohio, Texas, and Indiana. Call me for all your best options. WHY ME? I have made my career about fighting for the customer. Take advantage of my devotion to you and my knowledge: having written a number of articles on credit, taught before groups credit basics, and studied banking, investments, and insurance, before I became a mortgage consultant. I have focused now on mortgage lending in the widest range of options in order to better serve you... All information on this site is my personal opinion and does not reflect in any way the opinion of my employer, nor should it be inferred.

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2 thoughts on “The Truth About Cash Out!”

  1. Pingback: Get some cash out on that rental property mortgage refinance! – Platinum Mortgage Consultant Corey Vandenberg NMLS 563900
  2. Pingback: What have I learned from recent refinances? – Corey Vandenberg – Mortgage Loan Officer – NMLS 563900

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