CASH-OUT REFINANCE
A cash-out refinance is when you replace your current mortgage with a larger loan and receive the difference in cash. Two important things to remember:
- The amount you can borrow is based on the amount of equity you have in your home. You must qualify for a higher loan amount.
- You typically can’t borrow all of your home’s equity. Until your home appraisal is completed, the cash-out refi loan amount is an estimate.
Northeastern Realty offers a variety of refinance loans depending on your situation, financial goals and current mortgage. Here are some refinance loan programs we have to offer:
FANNIE MAE
An Fannie Mae cash-out refinance allows you to tap the equity in your home with 620 credit score requirements.
Principal Residence Cash-Out Refinance
1 Unit FRM/ARM: 80%
2-4 Units FRM/ARM: 75%
Second Homes Cash-Out Refinance
1 Unit FRM/ARM: 75%
Investment Property Limited Cash-Out Refinance
1-4 Units FRM/ARM: 75%
Investment Property Cash-Out Refinance
1 Unit FRM/ARM: 75%
2-4 Units FRM/ARM: 70%
FREDDIE MAC
Freddie Mac’s cash-out refinance mortgage options can help you leverage home equity for immediate cash flow.
Whether you want to consolidate debt or obtain cash for home improvements (or reduce a rate and monthly payment; pay off a purchase money junior lien used for any purpose; or pay off a leasehold interest), all related closing costs, financing costs and prepaid items can be rolled into the new loan amount, further maximizing your cash flow potential.
FHA
An FHA Cash-Out refinance is a refinance of any Mortgage or a withdrawal of equity where no Mortgage currently exists, in which the Mortgage proceeds are not limited to specific purposes.
Maximum Mortgage Amounts
• Maximum Loan-to-Value:
– 85 percent of the Adjusted Value.
• Maximum Combined Loan-to-Value:
– 85 percent of the Adjusted Value.
VA
A VA-backed cash-out refinance loan lets you replace your current loan with a new one under different terms. If you want to take cash out of your home equity or refinance a non-VA loan into a VA-backed loan, a VA-backed cash-out refinance loan may be right for you. Find out if you’re eligible.
Cash Out Mortgage Seasoning
Freddie Mac
A first lien mortgage that is being paid off with proceeds from a cash–out refinance must be seasoned for at least 12 months.
This requirement will not apply in the following cases:
* The first lien mortgage is a HELOC,
* The cash–out proceeds will be used to buy out the equity of a co-owner
Fannie Mae
A first lien mortgage that is being paid off with proceeds from a cash–out refinance must be seasoned for at least 12 months.
This requirement will not apply in the following case:
* The cash–out proceeds will be used to buy out the equity of a co-owner*
*Fannie Mae considers buying out an owner’s interest as a rate and term refinance
FHA
The original transaction must have had 210 days pass since the first payment due date and 6 monthly payments have been made on time.
**FHA requires the borrower to own and occupy the subject property for at least 12 months prior to Case Number assignment date before being eligible for a cash–out refinance.
VA
The original transaction must have had 210 days pass since the first payment due date and 6 monthly payments have been made on time.
How to Get a Cash-Out Refinance
Getting a cash-out refinance is similar to the process when you took out your first mortgage loan. You must submit an application online and financial documentation to your loan officer, who will then consider your income, creditworthiness and other factors to approve or deny your loan.
Here’s a quick breakdown of the steps and requirements for this refinance:
Apply & Get a Loan Estimate
Applying for a home loan soon? Do yourself a favor. DO: Work with a local mortgage broker (like us) who’ll shop around for a better loan. DON’T: Buy a car or make any other major purchase that will affect your credit.
We have technology that lets you submit your documents through an online portal and then allows you to track the loan every step of the way. Let me put that tech to work for you!
Submit loan documents
Nervous about the interest rate on your refinancing? Be confident you’re getting a competitive rate with Northeastern Realty. If rates drop, we’ll lock you in at the lower rate. Enjoy the fun of refinancing your loan without the stress!
Schedule a home appraisal
Worried about getting a low appraised value on your home? You may be able to waive your appraisal! Whether purchasing or refinancing a home, you could be eligible for an appraisal waiver and speed up your closing process. Call us today to find out if you qualify!
Close the refinance loan
Virtual E-Closing gives you the convenience of closing on a purchase or refinance without leaving your home. Call us today to learn more!
A rate-and-term refinance is a way to swap out your current mortgage with a new loan that improves your mortgage terms.
A cash out loan is one that refinances the rate, the term or both while at the same time pulling out equity in the form of cash at the closing table.
Refinancing is a common solution for homeowners who want to lower their interest rates, adjust the length of their mortgages, change the type of their mortgages, or use their existing home equity to fund a large expense, like a renovation or home repairs, through a cash-out refinance.
You’ll be replacing your current loan with a new one, so it’s important that you have a specific goal when considering refinancing.
The process for refinancing your home will likely be similar to the steps you went through to get your current loan. Northeastern Realty, LLC, will look at your income, credit score and the value of your property. If refinancing your home sounds like something that fits with your homeownership goals, then finding the right type of loan is the next step.
After selecting and applying for a loan, the approval process begins. For approval, we must verify your credit, employment history, assets, property value, and anything else required by your particular circumstances. Some programs use information you provided when you first got your mortgage, which helps to streamline the process.
Northeastern Realty offers a variety of refinance loans depending on your situation, financial goals and current mortgage. Here are some refinance loan programs we have to offer:
RefiNow
Refi Possible
FHA Streamline
USDA Streamline
VA Refinance
Rental Income Refinance
