What is Cash Out Refinancing?

Cash out refinancing refers to a refinancing option whereby an existing home loan is replaced by a new one with a greater amount than what was owed on the old loan. This allows the client to obtain extra money that can be spent on home renovations, debt consolidation or to meet other expenses. Your property must have enough equity to utilize a cash-out refinance. Contrary to a cash out refinance, a rate and term refinance simply will pay off an existing mortgage with no additional money to the borrower.

How does a cash out refinancing work in South Carolina?

• Allows the borrower to capitalize on the home’s equity and receive money for other needs.
• Has a relatively higher interest rate because of the additional risk to the Lender.
• Cash-out loan to values typically are maxed out at 80 percent of the home’s value.

Refinancing mortgage cash out option

The equity in the house is determined by the current value of the house minus the mortgage balance. With each mortgage payment you make, your home’s equity increases because your mortgage balance decreases. Homeowners can also build equity if the properties in the area increase in value. A cash-out refinance is a great way to access your home’s equity.

Cash out refinance pros and cons

There are some cons that relate to fees involved in a cash-out refinance, including mortgage points and closing costs. A cash-out refinance may attract a higher interest rate compared to a traditional mortgage because of extra risk to the Lender. Cash-out refinance loans have the same terms as a rate and term refinance, between 10 and 30 years. The pros to working with The Cain Mortgage Team are; we charge no origination fees or points unless the point is used to obtain a lower rate.

Cash out refinancing rates in South Carolina

- Step 1 of 4

Today's Rate

Property State: *Select oneALAKAZARCACOCTDEFLGAHIIDILINIAKSKYLAMEMDMAMIMNMSMOMTNENVNHNJNMNYNCNDOHOKORPARISCSDTNTXUTVTVAWAWVWIWY

Type of Home *Select OneSingle FamilyMulti-FamilyTownhouseCondominium

Your Credit Profile *Select OneExcellentGoodFair Poor

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Step 2 of 4 - Needs Assessment

Are you looking to purchase or refinance? *Select OnePurchaseRefinance

Purchase

Have you already found a property to purchase? *

• Yes
• No

Is this your first time purchasing a home? *

• Yes
• No

What is the intended use of the property? (copy) *Select OnePrimary ResidenceVaction HomeInvestment Property

How long do you plan on keeping the property? *Select OneLess than a year1 - 5 years6 - 10 years11 - 15 years16 - 20 years21 - 25 years21 - 25 years26 - 30 years30 + yearsI don't know right now

Estimate the value of the property you wish to purchase: *Select OneLess than $100,000$100,000 - $120,000$120,000 - $140,000$140,000 - $160,000$160,000 - $180,000$180,000 - $200,000$200,000 - $220,000$220,000 - $240,000$240,000 - $260,000$260,000 - $280,000$280,000 - $300,000$300,000 - $325,000$325,000 - $350,000$350,000 - $375,000$375,000 - $400,000$400,000 - $425,000$425,000 - $450,000$450,000 - $475,000$475,000 - $500,000$500,000 - $525,000$525,000 - $550,000$550,000 - $575,000$575,000 - $600,000$600,000 - $625,000$625,000 - $650,000$650,000 - $675,000$675,000 - $700,000$700,000 - $725,000$725,000 - $750,000$750,000 - $775,000$775,000 - $800,000$800,000 - $825,000$825,000 - $850,000$850,000 - $875,000$875,000 - $900,000$900,000 - $925,000$925,000 - $950,000$950,000 - $975,000$975,000 - $1,000,000$1,000,000 - $1,100,000$1,100,000 - $1,200,000$1,200,000 - $1,300,000$1,300,000 - $1,400,000$1,400,000 - $1,500,000$1,500,000 +

Refinance

Your reason for refinancing is? *Select OneLower my monthly paymentsGet a lower interest rateChange the terms of my loanCash outHome Equity Line of creditReverse mortgageOther

What is your current loan program? *Select OneFixedAdjustableHelp me decide whats best for me

Estimate your current interest rate: *Select OneLess than 2.00%2.25%2.50%2.75%3.00%3.25%3.50%3.75%4.00%4.25%4.50%4.75%5.00%5.25%5.50%5.75%6.00%6.25%6.50%6.75%7.00%7.25%7.50%7.75%8.00%8.25%8.50%8.75%9.00%9.25%9.50%9.75%10.00%10.25%10.50%10.75%11.00%11.25%11.50%11.75%12.00% +

Estimate the current value of the property *Select OneLess than $100,000$100,000 - $120,000$120,000 - $140,000$140,000 - $160,000$160,000 - $180,000$180,000 - $200,000$200,000 - $220,000$220,000 - $240,000$240,000 - $260,000$260,000 - $280,000$280,000 - $300,000$300,000 - $325,000$325,000 - $350,000$350,000 - $375,000$375,000 - $400,000$400,000 - $425,000$425,000 - $450,000$450,000 - $475,000$475,000 - $500,000$500,000 - $525,000$525,000 - $550,000$550,000 - $575,000$575,000 - $600,000$600,000 - $625,000$625,000 - $650,000$650,000 - $675,000$675,000 - $700,000$700,000 - $725,000$725,000 - $750,000$750,000 - $775,000$775,000 - $800,000$800,000 - $825,000$825,000 - $850,000$850,000 - $875,000$875,000 - $900,000$900,000 - $925,000$925,000 - $950,000$950,000 - $975,000$975,000 - $1,000,000$1,000,000 - $1,100,000$1,100,000 - $1,200,000$1,200,000 - $1,300,000$1,300,000 - $1,400,000$1,400,000 - $1,500,000$1,500,000 +

Estimate your current loan balance: *Select OneLess than $100,000$100,000 - $120,000$120,000 - $140,000$140,000 - $160,000$160,000 - $180,000$180,000 - $200,000$200,000 - $220,000$220,000 - $240,000$240,000 - $260,000$260,000 - $280,000$280,000 - $300,000$300,000 - $325,000$325,000 - $350,000$350,000 - $375,000$375,000 - $400,000$400,000 - $425,000$425,000 - $450,000$450,000 - $475,000$475,000 - $500,000$500,000 - $525,000$525,000 - $550,000$550,000 - $575,000$575,000 - $600,000$600,000 - $625,000$625,000 - $650,000$650,000 - $675,000$675,000 - $700,000$700,000 - $725,000$725,000 - $750,000$750,000 - $775,000$775,000 - $800,000$800,000 - $825,000$825,000 - $850,000$850,000 - $875,000$875,000 - $900,000$900,000 - $925,000$925,000 - $950,000$950,000 - $975,000$975,000 - $1,000,000$1,000,000 - $1,100,000$1,100,000 - $1,200,000$1,200,000 - $1,300,000$1,300,000 - $1,400,000$1,400,000 - $1,500,000$1,500,000 +

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Select up to three loan programs

What type of loan program are you considering?Select OneGovernment (FHA or VA)JumboNew ConstructionOtherHelp me decide whats best for me

Are you looking for a fixed or adjustable rate? *Select OneFixedAdjustableHelp me decide whats best for me

What term (length) of loan are you considering? *Select One15 year30 yearOtherHelp me decide whats best for me

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Benefit of a cash out refinancing in South Carolina

Home Equity Loans typically come with lower fees but the rate is higher and on a shorter term. Additionally, Home Equity Loans can have variable rates or even be interest only. There are positives and negatives associated with both of these features. We would recommend you contact a local Loan Officer to learn more. Additionally, a Home Equity Loan is a separate loan that is secured with your house. A cash out mortgage loan takes the place of your existing mortgage.

Both home equity loans and refinancing are great ways to obtain cash depending on what your property is currently worth.

HELOCs are ideal for homeowners who require access to a certain amount of money over time instead of getting the whole amount upfront.

For additional information or to have a conversation regarding which loan would be more beneficial for you, call The Cain Mortgage Team at 803 261 9267!

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