Why Take Cash Out?
Put your equity to work
We offer cash-out refinance options so you can pay off higher interest debts, make home improvements or renovations, or fund other important expenses.
Take advantage of favorable loan terms
With a cash-out refinance, you will be able to borrow funds on some of the most favorable terms. Our loan options may have lower interest rates than personal loans and home equity lines and longer repayment schedules.
Let JFQ Lending show you how
Our experienced mortgage professionals will review your complete financial profile, including your income, assets, and credit to make it simple and easy to unlock the equity in your home.
Cash-Out FAQs
When you refinance your home loan into a larger loan amount than what you currently owe, and receive the remaining funds at closing, this is considered a cash-out refinance.
There are also scenarios where you may not receive funds at closing but are paying off other debts or a secondary loan — like a Home Equity Line of Credit (HELOC). These might also be considered cash-out loans. This is usually the case unless the secondary loan was part of the initial purchase of your home.
A cash-out refinance allows you to take money out of the equity in your home, up to a certain loan-to-value percentage. Since your loan amount is increasing, investors see this as an increase in risk and charge slightly higher interest rates for cash-out loans compared to rate-and-term refinances.
Regular rate-and-term refinances are limited to financing the amount that you owe on your current loan. You may be able to roll in the costs of refinancing and even receive a small sum at closing though. For conventional loans, this is limited to 2% of the loan or $2,000 — whichever is less. For other loan types, like FHA or VA loans, this may be limited to $500 or less.
Consolidate Debt
Save money monthly by consolidating your higher interest debts into one lower monthly payment using the equity you have built in your home. Right now, first mortgage interest rates are some of the least expensive borrowing options — lower than credit cards, personal loans, and separate home equity loans.
Renovate Your Space
Home improvements are an investment into your space that you can fund with your own equity instead of out-of-pocket. Making your house into your dream home, or just updating a few key areas and keeping up with necessary repairs can offer a great return on investment.
Fund What Matters Most To You
Whether it's upcoming college tuition, your down payment on a vacation home, or start-up capital for a new business, you can use your home's equity to pay for these important expenses.
Completing your cash-out refinance involves paying off your current mortgage and replacing it with a new, higher loan amount. The entire loan amount is under the same interest rate and loan term going forward, and you have one new monthly payment.
Getting a home equity loan or line of credit involves creating a secondary loan (sometimes referred to as a subordinate lien) behind your current first mortgage. It does not involve changing the terms of your current mortgage and creates another separate monthly payment on its own terms. Often this is a higher, adjustable interest rate repaid over a shorter period of time.
Getting approved starts here.
Our mortgage professionals are ready to help.