Quickly turn your home equity into cash by tapping into your property’s value.
Enjoy an easy, secure online application process.
We strive to get you your cash in within weeks.
If you choose a fixed rate, it’s easier to manage your budget.
When you choose MortgageShield, you choose decades of combined industry experience.
At MortgageShield, we don’t charge all the extra fees other lenders do.
Enjoy an easy, streamlined online application process through stress-free closing.
A cash-out refi gives you access to the equity in your home. Essentially, you refinance your existing mortgage into a new one with a larger outstanding principal balance and pocket the difference (less your closing costs). The amount of cash you receive is generally based on the difference between your home’s current value and the remaining balance on the loan (less your closing costs), but other factors – such as occupancy, loan-to-value ratio, amount of loans on the property, etc. – can also come into play.
Typically, a lender will limit cash-out refinance loan amounts to 80% of your home’s value. To use the same example as before, if your home is valued at $250,000 and your current mortgage balance is $150,000, you could cash-out up to $50,000 (less your closing costs) — because the new loan totals $200,000, which is 80% of $250,000, your home’s current value.
While both allow the borrower to take out equity, they are different. With a cash-out, you’re refinancing your original mortgage and replacing it with a new mortgage that starts from scratch. A home equity loan is an additional loan on your home, leaving your original mortgage payment unchanged.
In most cases, you must go through the appraisal process. This is one of the most crucial steps in the refinancing process, as it establishes the market value of your home, which will determine how much money you’ll be able to cash-out.
The cash pulled from a cash-out refinance can be used for anything; from consolidating debt to taking a big vacation, the choice is yours!