Cash Out Refi

A cash-out refinance allows homeowners to tap into their home’s equity by refinancing their mortgage for a higher loan amount and receiving the difference in cash. This can be used for home improvements, debt consolidation, investments, or other financial needs. Cash-out refinancing replaces your existing mortgage with a new loan, often with a different term or interest rate.

Unlike a home equity loan or HELOC, a cash-out refinance provides a lump sum payment at closing and may offer lower interest rates compared to other borrowing options. Borrowers typically need sufficient equity in their home, a good credit score, and stable income to qualify. Loan options are available through Conventional, FHA, and VA programs, each with different eligibility requirements and guidelines.

If you’re looking for a way to access your home’s equity while potentially lowering your mortgage rate, a cash-out refinance could be a smart financial move. Understanding your loan options and long-term goals can help determine if this strategy is right for you.

Disclaimer: Loan product guidelines are subject to change. Contact your Caritas Mortgage loan officer for the most up-to-date information.