A cash out refinance provided fund to pay off your existing mortgage while provided extra cash for you to use for other things.  Essentially this means will have a larger mortgage but have extra cash.

Your primary residence, investment property or second home qualifies for a cash out loan and typically up to 75-80% of the value of the property also known as Loan To Value (LTV).

As property values continue to climb more equity becomes available giving homeowners an opportunity to put their home equity to work for them in other areas. California homeowners often use cash from their refinance to update their home with a remodel, add new landscaping or even a swimming pool. 

Home equity increases each month as you make your monthly mortgage payment as your principal balance is reduced. Even when the housing market isn’t growing, home equity continues to build.

By using a primary mortgage or first mortgage you may be able to deduct the interest and keep payments more manageable due to longer amortizations such as a 30 year fixed rate.  There’s no need to rely on credit cards, a personal loan or even a second mortgage.  Use the equity you have saved in your home!

The equity can be used for anything you desire, not just home improvements.   Homeowners can use equity to pay for college, refinance their credit card debt or even purchase a new car. There are no limits with the cash you receive from your cash out refinance.

The cash you receive from a cash out refinance is not taxable income according to the IRS.  

Qualifying for a cash out refinance:

• Typically a 620 or higher credit score
• A debt ratio of 50% or less based on gross income
• A Loan To Value (LTV) of no more than 80% upon completion of the Cash Out Refinance

Documents Typically needed for a cash out refinance:

• Your most recent W2 form
• One month paycheck stubs
• Two most recent bank statements
• If you’re self employed, tax returns and some business information may also be needed

With today’s technology and automation sometimes these typical documents are no longer needed.  Your Integrated Lending Group professional will guide you to make the process as efficient and transparent as possible.