Did you know that your home can be a great source of ready cash whenever an emergency arises? Two of the most common ways to cash out on your home are cash-out refinancing and home equity loans. Let’s look at the difference between the two to find out which is better for your situation.
A home equity loan provides cash in exchange for the equity you’ve built up in your property, while a cash-out refinance pays off your old mortgage in exchange for a new loan with a lower interest rate. Both can give homeowners much-needed cash based on home equity.
Cash-out is ideal if you need a significant amount of money and intend to stay in your home for at least a year. Home equity loans are best for owners who need access to cash over a while instead of getting a large amount upfront.
Interest Rates Have Increased
Borrowers May Not Qualify
Due to DTI Calculation
Time To Consider
NO RATIO PROGRAM
No DTI calculation
No Income on Application
No Employment on Application
No Tax Returns
No W2s
No 1099
Only Required to Have
as low as 20% Down Payment
80% LTV = 720+ FICO - 12 Months Reserves
75% LTV = 680-719 FICO - 9 Months Reserves
65% LTV = 660-679 FICO - 9 Months Reserves
Funds for Down Payment
Closing Costs
Prepaid’s
Reserves
Primary Residence
Second Home
Purchase
Refinance
Minimum Loan $200,000
