Would some extra cash go a long way toward helping you reach your financial goals? Do you need money to fund renovations that will transform your house into your dream home? A cash-out refinancing program might be your answer. At MortgageDepot, we help our Pennsylvania clients use the equity in their homes to do things that they never thought were possible with our refinancing programs.
What is a Cash-Out Refinance?
Perhaps you are already familiar with rate-and-term refinancing. These programs allow borrowers to replace their old mortgage with a new one that offers lower interest rates and/or a shorter term. A rate-and-term mortgage usually saves the borrower a significant amount of money over the life of the loan.
A cash-out refinance program replaces your current loan with a loan that has a higher balance. Borrowers who opt for a cash-out refinance will receive the difference between the two loans at closing to use as they wish. We recommend that borrowers use these funds wisely to pay off high-interest debt, cover remodeling projects or eliminate student loans.
Borrowers benefit most when they seek a cash-out refinance when interest rates are low. Although their mortgage will have a higher balance, the lower interest rate might help offset added monthly costs and save money compared to other methods of obtaining a loan.
A Cash-Out Refinance With MortgageDepot
It’s easy to qualify for MortgageDepot’s cash-out refinance programs. Here’s all you need:
- A minimum credit score of 620 is required.
- Borrowers may own up to four financed properties.
- The maximum LTV and CLTV values are as follows:
• 80% on a 1-unit primary residence
• 75% on a property that has between two and four units
• 75% on a second home or a single-unit investment property
• 70% on an investment property that has between two and four units
Contact MortgageDepot Today!
MortgageDepot is committed to helping our clients use their homes to their advantage. If you have a mortgage in Pennsylvania and need cash to fund something major, contact one of our experienced loan officers to see if a cash-out refinance is the right move for you.
Contact us today or email us here for more information.