Cash Out Refinance? Find Ultra Low Rates Here!
Refinance your home or investment property and pull cash out for a remodel or renovation! Do you need to pull cash out to consolidate debt and pay personal expenses? No problem! We are a family owned and operated mortgage company -local to Southern Orange County, in the city of Foothill Ranch.
Take advantage of our competitive wholesale rates and excellent service. Watch the short 2 minute video below and follow the steps or call us direct at (949) 291-8468.
Check LIVE interest rates now, watch below!
Fill out the short form below for your live rate quote or call (949) 291-8468.
What Are The Benefits Of A Cash Out Refinance?
There are many reasons why someone would want to refinance with cash out. Here are a few of them:
- Remodel and Renovate – Often times a homeowner will take cash out of their home to do home improvements and upgrades. Want to revamp that kitchen with all new appliances and cabinetry? Update that old and moldy bathroom? A cash out refinance may be just the solution.
- Consolidate Debt – Maybe you have a 1st and a 2nd mortgage that you are making payments on and you would like to consolidate the two into one simple payment. Refinancing and taking cash out is a great opportunity to refinance your first mortgage and then pay off your second mortgage at the same time.
- Pay Expenses – It is not uncommon for people to use the equity in their homes to pay for personal expenses. By refinancing with a larger loan amount and taking cash out, you are able to use the additional funds towards anything you desire. Often times people will use the funds to pay off credit cards, fund tuition or pay medical bills.
Keep in mind everyone’s situation and goals will be different when it comes to a cash out refinance. Speak with one of our mortgage professionals to learn the scenario that’s right for you based off of YOUR goals!
How Do You Calculate FHA Loan Affordability?
For an FHA loan, your monthly housing costs should not exceed 29% of your gross monthly income. Total housing costs include mortgage principal and interest, property taxes, and insurance. Those four terms are often lumped together, and referred to as PITI.
Monthly income X .29 = Maximum PITI
For a monthly income of $3,000, that means $3,000 x .29 = $870 Maximum PITI
Your total monthly costs, adding PITI and long term debt, should be no more than 41% of your gross monthly income. Long term debt includes such things as car loans and credit card balances.
Monthly income x .41 = Maximum Total Monthly Costs
For a monthly income of $3,000, that means $3,000 x .41 = $1230
$1,230 total – $870 PITI = $360 allowed for monthly long term debt
The ratios for an FHA loan are more lenient than for a typical conventional loan. For conventional home loans, PITI expense cannot usually exceed 26-28% of your gross monthly income, and total expense should be no more than 33-36%.
Ready to get started? Fill out the form at the top of the page or call (949) 291-8468!