VA CASH OUT REFINANCE
For example, if a home is appraised at $100,000 and the borrower's outstanding mortgage loan is $60,000, it is possible to enter into an 80% cash-out refinance transaction for a loan of $80,000 (80% of $100,000). The new mortgage of $80,000 will pay off the $60,000 loan and leave $20,000 cash-out to the borrowers.
What are the benefits of a VA Cash Out refinance?
By cashing out on your home, you can obtain cash on the value of your own home to pay off existing debts (like credits cards) or pay for upcoming expenses (college), or even get the money to update or repair your home (new siding, new roof).
The refinance may also provide you with a lower interest rate too if rates are lower today than when you initially got you loan.
CASH OUT IS NOT A HELOC (home equity loan)
While you are taking cash out, a cash out refinance is different from a Home Equity Loan (HELOC). A home equity loan is a new smaller loan. You leave your existing mortgage alone. The cash out refinance you pay off your existing mortgage AND take additional cash in one new mortgage.
CASH OUT VA REFINANC TO 100%VA loans allow you to take cash out up to 100% of the appraised value of your home. How cool is that? This is a huge benefit over conventional loans, which only allow you to cash out to 80% of the value, and FHA loans which only allow you to take out 85% of the homes value. You can you the money for anything you wish. There are no restrictions.
YOU SERVED US, LET US SERVE YOU
If you are looking for this type of refinancing, Mortgages Unlimited can help make it a new day in your life with a program suited to your financial needs. We offer cash-out programs for both owner-occupied homes, and non-owner occupied homes.
Contact our Minnesota, Wisconsin, or South Dakota property VA Loan Experts today at (651) 552-3681, or simply get started with a quick online VA Loan Application.