Cashing out refers to the refinancing of a loan where the borrowers will borrow money on
their own home. If a home is appraised at $100,000 and the borrower's outstanding mortgage
loan 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 $20,000 cash-out to the borrowers.
By cashing out on your home, you can obtain cash on the value of your own home to pay off
debts or upcoming expenses. The refinance transaction can also provide you with a better
mortgage loan interest rate that will save on your monthly mortgage payments during the
loan. And it's tax-deductible.
If you are looking for this type of refinancing, Spectra Home Mortgage can find a
program suited to your financial needs. We offer cash-out programs for Owner-occupied homes
and Non-owner occupied homes, with low, affordable rates.