Cash-Out Refinance California
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What type of property are you refinancing?
Single Family
Multifamily
Condominium
Townhouse
How will this property be used?
Primary Residence
Vacation Home
Investment Property
Estimate credit score
Excellent 770+
Good 660-719
Avg. 620-659
Below avg. 580-619
Poor <579
How can we help you today?
Home Purchase
Refinance
What type of property are you purchasing?
Single Family
Multifamily
Condominium
Townhouse
Are you a first-time home buyer?
Yes
No
How will this property be used?
Primary Residence
Vacation Home
Investment Property
Estimate credit score
Excellent 770+
Good 660-719
Avg. 620-659
Below avg. 580-619
Poor <579
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Summary
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Refinance Your Mortgage with Cash-Out Option
Life often brings unexpected financial needs, such as covering college tuition, major home renovations, starting a new business, or consolidating high-interest credit card debt.
A cash-out refinance allows you to tap into your home’s equity, providing extra funds while potentially lowering your interest rate. This option can be an excellent solution for securing the cash you need while maintaining financial stability.
Cash-Out Refinance Options
Conventional Cash-Out Refinance
Available for homeowners with at least 20% equity in their property. Ideal for those seeking competitive rates and flexible terms.
FHA Cash-Out Refinance
Requires at least 15% equity in the home. Designed for borrowers who may not qualify for conventional loans.
VA Cash-Out Refinance
Exclusive for veterans and active service members. Offers flexible terms and high loan-to-value ratios.
What Is a Cash-out Refinance?
A cash-out refinance allows homeowners to replace their existing mortgage with a new loan that has better terms and a higher balance. The difference between your old and new loan amount is returned to you as cash, providing a way to access your home’s equity for significant expenses.
The key difference is that a cash-out refinance provides upfront cash, unlike a traditional refinance that only improves loan terms, and it’s not a HELOC, where you borrow against equity as needed.
Have Questions? Reach us out:
Hours: Monday-Friday 10:00 AM - 5:00 PM
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1810 W Burbank Blvd #150, Burbank, CA 91506
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M-F 10 AM-5 PM (PST)
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Simply e-mail or use online-chat
What are the Benefits of a Cash-out Refinance?
If you are thinking about cash-out refinance in Los Angeles or other California cities, call us for a free consultation to know your options. This type of refinancing is an excellent option in some circumstances but will not be beneficial to others. Here are some factors you need to take into consideration before deciding to use a cash-out refinance:
Will you pay more money on your loan in the long run?
In most cases this is true, so you need to consider whether you are ready to do that. However, you can set the loan term on a cash-out loan which will give you more flexibility.
Will your monthly payments increase?
Since you total loan amount increases monthly payments will rise too.
Do you have enough equity in your home?
The loan-to-value ratio for FHA and conventional loans is 70-85%, for VA loan – up to 100%.
Cash-out Refinance Process
Four easy steps to get your funds
Step 1
Pre-Qualification
Talk to Us to Know Your Options
Step 2
Start a Loan Program
We Shop You Choose
Step 3
Pre-Approval
Get a Loan Approval on the Terms You Want
step 4
Closing
Your Goal is Achieved!
What are the Requirements for a Cash out Refinance?
If you’ve decided to move forward with a cash-out refinance, here are the key documents you’ll need to provide:
📌 Personal Information
– Current address and Photo ID
📌 Employment & Income Verification
– Employment history for the past two years
– Two most recent W-2 forms
– Two most recent years of Federal tax returns
– Two most recent bank statements
📌 Property & Assets
– Details of any other properties owned
Having these documents ready will streamline the approval process and help you get your funds faster.
Reasons for Cash-out Refinance
A cash-out refinance isn’t the right solution for every financial situation, but it can be a smart move when used strategically. Here are some of the most common and beneficial reasons homeowners choose to access their home equity:
🎓 Paying for College Education: Investing in your child’s future can provide long-term financial and career benefits.
🏥 Covering Unexpected Medical Expenses: A cash-out refinance can provide funds for medical emergencies or necessary treatments.
💳 Paying Off High-Interest Debt: Consolidating credit card debt or personal loans into a lower mortgage rate can save thousands in interest.
📜 Potential Tax Benefits: Mortgage interest may be tax deductible, depending on how the funds are used (consult a tax professional).
🏡 Home Improvements & Renovations: Upgrading your home can increase property value, improve comfort, and enhance long-term resale potential.
Cash-Out Refinance FAQ
What is a cash-out refinance, and how does it work?
A cash-out refinance replaces your existing mortgage with a new, higher loan amount, allowing you to withdraw the difference in cash. This option lets homeowners access their home’s equity to cover significant expenses while still retaining ownership.
Example of a Cash-Out Refinance:
🏡 Your home is worth $500,000
💰 You owe $300,000 on your current mortgage
🔄 You refinance for $400,000
💵 You receive $100,000 in cash while maintaining equity in the property
This strategy can be a smart way to fund home renovations, consolidate debt, or invest in other financial goals.
What are the eligibility requirements for a cash-out refinance in California?
To qualify for a cash-out refinance in California, lenders evaluate key financial factors to ensure you can manage the new loan. Here are the primary eligibility requirements:
📊 Credit Score: A minimum score of 620 is typically required, though it may vary by lender and loan type.
🏡 Loan-to-Value (LTV) Ratio: Most lenders allow refinancing up to 80% of your home’s value, ensuring you retain at least 20% equity.
💼 Stable Income & Employment: Lenders assess consistent income and employment history to confirm your ability to handle the new mortgage payments.
📞 Not sure if you qualify? Contact us today for a free assessment and personalized guidance!
What are the advantages of a cash-out refinance over other borrowing options?
A cash-out refinance offers several benefits compared to personal loans, credit cards, or home equity lines of credit (HELOCs). Here’s why it might be the best choice:
💰 Lower Interest Rates: Mortgage rates are typically lower than credit card or personal loan rates, helping you save on interest costs.
📆 Single Monthly Payment: Instead of juggling multiple debts, a cash-out refinance consolidates everything into one manageable mortgage payment.
🏡 Potential Tax Benefits: Mortgage interest may be tax-deductible if the funds are used for home improvements (consult a tax advisor for details).
What are some drawbacks to a cash-out refinance?
While a cash-out refinance can be a valuable financial tool, it’s important to consider potential downsides before making a decision:
💰 Closing Costs: Expect to pay 2% to 5% of the loan amount in closing costs, similar to taking out a new mortgage.
📆 Longer Loan Term: Refinancing can extend your loan term, leading to more interest payments over time.
🏡 Risk of Default: Since your home is used as collateral, failing to make payments could result in foreclosure, making it riskier than unsecured debt options.
How much cash can I get from a cash-out refinance?
The amount you can withdraw depends on your home’s value, your current mortgage balance, and lender loan-to-value (LTV) limits.
📊 Typical Loan-to-Value (LTV) Guidelines: Most lenders allow you to borrow up to 80% of your home’s market value.
Example Calculation:
🏡 Home Value: $400,000
💰 Current Mortgage Balance: $200,000
🔄 Eligible Refinance Amount (80% LTV): $320,000
💵 Cash Available to Withdraw: $120,000
Your final cash-out amount in California depends on your lender’s policies, credit score, and financial profile.
How long does it take to complete a cash-out refinance?
The cash-out refinance process typically takes 30 to 45 days from application to closing. However, the exact timeline can vary based on several factors:
⏳ Key Factors Affecting the Timeline:
✔ Appraisal Availability: Scheduling and completing a home appraisal may take extra time.
✔ Financial Documentation: Delays can occur if required documents aren’t submitted promptly.
✔ Lender Processing & Underwriting: Some lenders process applications faster than others.
How can I start the cash-out refinance process?
Getting started is simple! Contact us to discuss your options and begin the process:
📞 Call Us: 323-741-5858
📍 Visit Us: 1810 W Burbank Blvd #150, Burbank, CA 91506
Our mortgage professionals will guide you through every step, explain your options in detail, and tailor a cash-out refinance solution that fits your needs.
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