---

Cash-Out Refinance

Author	Message
	Add to del.icio.us Add to YahooMyWeb Add to Simpy Add to BlinkList
Sam Site Admin Joined: 21 May 2005 Posts: 813 Location: CALIFORNIA 347.04 Dollars($)	Posted: Thu Apr 01, 2004 4:14 am    Post subject: Cash-Out Refinance Like 0 Dislike 0 Cash out Refinancing is the process of taking a new mortgage loan greater than the unpaid balance of the existing mortgage, keeping the same property as security for the debt. Through this process a borrower can pay off the existing loan as well as utilize the extra cash for other purposes. For example, suppose Kris took a mortgage loan of $1, 20,000 to purchase a house. He still owes $70,000. He also wants $25,000 as cash. So he takes a new mortgage loan of $95,000 with the same property as the collateral. This is known as cash out refinancing. Features: One should choose cash out refinance mortgage only when the current market rate is lower than the interest rate on the existing mortgage. The loan amount in cash out refinancing exceeds the amount of existing mortgage that is left to be paid. A borrower has to pay for the closing costs associated with cash out refinance loan. The interest on cash out refinance loan is tax-deductible, so it prevents a borrower from paying extra taxes. Benefits: Cash out refinancing helps to generate cash from home equity and then use the extra cash for home repairs and paying off other debts. One can also shift from an adjustable rate mortgage to a fixed rate mortgage and vice-versa but this depends on how much a borrower can save due to prevailing market rates. Related Reading Is Refinance a wise financial decision? Related Forum Discussion Cash-Out Refinancing - Options Is anyone willing to offer cash-out refinance loan in Texas?
Andre' Guest	Posted: Wed Mar 18, 2009 5:12 am    Post subject: Fees at Closing Like 0 Dislike 0 Are the LTV/Indicator Score Fee and the Cash Out Refinancing Fee, two fees that have to be charged to the borrower or are these fees just a new way for banks to make money? These fees will add a combined 1.875% of loan amount to the closing cost on people with A Credit.
gmakerley Community Mentor Joined: 09 Nov 2007 Posts: 12330 Location: bloomfield, ct 50.03 Dollars($)	Posted: Wed Mar 18, 2009 7:00 am    Post subject: Like 0 Dislike 0 andre, i have never heard of "ltv/indicator score fee" nor "cash out refinancing fee." what kind of lender are you dealing with? _________________ George M. Akerley Independent Contractor - Mortgage Consultant Word of Excellence Editing/Writing/Proofreading 860-221-5044
eric1 Community Expert Joined: 04 Jan 2009 Posts: 1511 226.89 Dollars($)	Posted: Sat Mar 21, 2009 5:33 pm    Post subject: Like 0 Dislike 0 I really hope he answers you George....this will be interesting. _________________ Eric JFree Rate Quote, Stated Income Loans FHA RATE QUOTE Mortgage Rate Quote

Quick Reply
Your Name
Subject
Image Verification	Enter the code above here : Can't read the image? click here to refresh
Message body

All times are GMT - 7 Hours

Page 1 of 1

---

We have chosen to apply the Creative Commons Attribution License to all works we publish. This work is licensed under cc by 2.0