4 Cashout Refinance Options


– Hey guys, Austin Schneider here, and today we’re gonna give you four cash out refinance options
that you can take advantage of. So, cash out refinancing is
when you take out a loan, more than what you owe on your home to receive the difference in cash. For instance, if you owe
$100,000 on your home, right now and your home
now is worth a lot more, then you get a loan for say, $150,000 and now you’re able to use that $50,000 and have it as cash, and
use it to your discretion. So, there are four types
of cash out refinances. The first one is your conventional. This one, you will have
to have good credit, at least 30% equity in your home, and sometimes it does
come with a higher rate, so just beware of that when
you do go to get your new loan. And with the conventional refinance, you can use it onto your
primary home, your second home, and even your investment
properties as well. The second cash out refinance
option is your FHA cash out. This is good if you have a lot of equity pent up in your house, or if
you have lower credit scores. This refinance option allows you to get a loan for up to 85% of your home. With this type of refinance you will have to pay an upfront fee as well as, monthly mortgage insurance premiums. Third cash out refinance
option is the VA cash out. If you’re an active, or
former military member, this is really good for
you it’s good even if you have lower credit
scores and you can take out 100% of the appraised value of your home. So, if you don’t have a lot of equity, then you can still move
forward with this loan, and you’ll be able to get
the actual difference. And the last cash out refinance option is the jumbo cash out and
this is good for higher loans that aren’t in the, Freddie
Mac or Fannie Mae loan limits. Typically, it’s 600 to
700 thousand dollars, depending on the county
in which you live in. With the jumbo cash out each bank really has their own guidelines as far as, how much you can take out from it, but typically what we like to say is anywhere from the 30 to 40% equity range, in order for you to do this and yes, the banks will provide
big lump sums of money, if you are eligible for
this type of refinance. All right guys, for more on these topics, to check out these loans yourselves, clink the link in the
bio to read the bottom, and see if you are eligible yourself. All right, thanks so much for watching. Be sure to like, comment, and subscribe, and we’ll see you on the next video.

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