Cash Out Refinance - Boardwalk Lending

Cash Out Refinance

Cash out refinancing (in the case of real property) occurs when a loan is taken out on property already owned, and the loan amount is above and beyond the cost of transaction, payoff of existing liens, and related expenses.

Strictly speaking all refinancing of debt is “cash-out”, when funds retrieved are utilized for anything other than repaying an existing lien.

In the case of common usage of the term, cash out refinancing refers to when equity is liquidated from a property above and beyond sum of the payoff of existing loans held in lien on the property, loan fees, costs associated with the loan, taxes, insurance, tax reserves, insurance reserves, and in the past any other non-lien debt held in the name of the owner being paid by loan proceeds.

Example of Cash Out Refinancing

A homeowner who owes $80,000 on a home valued at $200,000 has $120,000 in equity. That equity can be liquidated with a cash out refinance loan providing the loan is larger than $80,000.

The total amount of equity that can be withdrawn with a cash-out refinance is dependent on the mortgage lender, the cash-out refinance program, and other relative factors, such as the value of the home.

http://en.wikipedia.org/wiki/Cash_out_refinancing

Choose Boardwalk Lending for your Mortgage

  • Boardwalk Lending does this every day.  We’ve been serving the St. Louis and Kansas City areas for 10 years. Our Mortgage Specialists average over 8.5 years of experience in matching buyers with the right Mortgages. We’ve successfully helped countless  people purchase their Vacation Homes and will do the same for you. Get qualified now!