You've done a great job building home equity. Reap the rewards with a home refinance with cash out.
Get relief from high-cost debt stress
Pay off or pay down high-cost credit cards, personal loans, or home equity lines.1
Bring your dream home vision to life
Get money to pay for home improvements that may even raise your home's value.
Use home equity to buy a rental property or make other investments in your future.
Lock in a safe fixed rate
Refinance to a fixed rate and still get cash.
Our Cash Out Refinance Professionals deliver concierge service. Call 888-966-9044 or sign up for a consultation now!
What is a Cash Out Refinance Loan?
When you do a refinance mortgage with cash out, you borrow money based on the current value of your home. Cash out refinance rates are typically lower than rates for credit cards or personal loans.
Wondering how much cash you can pull from your home? Our Cash Out Refi Professionals walk you through the options. Call 888-966-9044 or sign up for a consultation now!
How does a cash out refinance work?
Step 1: Discuss how much cash you need Tell us your goals and we'll show you ways to potentially use a cash out refinance to reach them. See your monthly payment, closing costs, interest rate, loan balance, and loan length options.
Step 2: Discover how much equity you've built We'll share a copy of your professional appraisal. Find out how much your home is worth and how much equity you may be able to cash out.
Step 3: Move through underwriting Share your information securely online and track your progress. Your Home Refinance Professional stays with you from application to closing. We service most of our loans. We want to be your lender for life.
Step 4: Close at home Close on your refinance in the comfort of your home (or in our office or a local coffee shop if you'd rather not have company).
Our Cash Out Refinance Professional stays with you throughout the journey, on call to answer your questions throughout the process. Call 888-966-9044 or sign up to start now!
What are cash out closing costs? Do I have to pay those at closing?
You may choose to include many closing costs in your loan amount, or pay a higher interest rate and get a credit to cover them.
Can I get a cash out refinance with bad credit?
There is no official minimum credit score to get a VA or FHA refinance. Instead, the rules let Planet Home Lending look at your overall credit report. That's why we can offer home loans to people across a broad credit spectrum.
What's the benefit of a cash out refinance vs home equity loan or a cash out refinance vs HELOC or a cash out refinance vs a second mortgage?
HELOCs (home equity lines of credit) are typically adjustable rate loans. That means the interest rate you pay and your monthly payment can rise. After the draw period, you have to pay not only the interest, but also repay the principal. That can lead to shockingly high monthly payments.
A fixed rate cash out refinance will have the same principal and interest payments. They won't rise even if Federal Reserve raises rates.
Second mortgages usually have higher interest rates than cash out refinance home loans.
How do cash out refinance mortgage rates compare to purchase mortgage rates?
They're usually slightly higher. Mortgage interest rates are based on risk. The more equity you take out of your home, the higher your interest rate may be.
How is refinancing your mortgage different from getting a mortgage to buy a home?
You get a check after you go to closing with a cash out refinance versus bringing cash to the closing table with a purchase a home loan. There's also a three-business-day recission period, meaning you can change your mind. You get your check on the fourth business day after the recission period is over.
Remember all those inspections you paid for when you bought your home – the home inspection, the radon inspection, the lead-based paint inspection, etc.? You won't have to do those again. The only inspection you might have to pay for is a termite check – and that's only if you're getting a VA home loan in an area where termites live (Alaskans, you're off the hook).
Other than that, the home loan process is pretty much the same.
Can I do a cash out refinance to buy an investment property?
Yes, you may be able to use a cash out refinance to buy a rental property. Planet Home Lending also has investment property loans based on rental income rather than your personal income. Those are available for experienced real estate investors.
Want to compare a cash out refinance to an income property purchase loan? We can show you that.
How are cash out refinance rules different for VA cash out refinance loans, FHA cash out refinances, and Freddie Mac or Fannie Mae cash out refinances?
When you refinance a mortgage with cash out, you have to follow the rules set by VA, FHA, conventional, or a private investor. Their rules cover things like the credit score you need to qualify, how much of your home equity you can borrow, and how big your mortgage can be.
The rules are complicated and change frequently. No worries, though, we know them all and can explain how they apply in your specific situation.
No, you typically can't do a streamline refinance and tap the equity in your home. You use a streamline refinance when you want to pay off your loan faster, lock in a fixed rate, or lower your interest rate, but not to get cash from your home.
What happens to my escrow funds when I refinance?
The money in your escrow account pays your property taxes, homeowner's insurance, and other important bills.
Three common ways to handle escrows in a refinance:
Roll the cost of escrows into your new home loan
Pay a higher interest rate and have the lender cover your escrows
Pay your escrows at closing out of pocket
After your refinance closes and your old home loan gets paid off, your servicer will refund the left-over money in your old escrow account. You can apply that money to your new home loan or use it to pay yourself back for the escrows you set up for the new loan.
If you're already a Planet Home Lending customer, we can roll over your existing escrows to your new home loan.
1 A debt consolidation refinance increases your mortgage debt, reduces equity, and extends the term on shorter-term debt and secures such debts with your home. The relative benefits you receive from debt consolidation will vary depending on your individual circumstances. You should consider that a debt consolidation loan may increase the total number of monthly payments and the total amount paid over the term of the loan. To enjoy the benefits of a debt consolidation loan, you should not carry new credit card or high interest rate debt.
THIS PRODUCT OR SERVICE HAS NOT BEEN APPROVED OR ENDORSED BY ANY GOVERNMENTAL AGENCY. THIS OFFER IS NOT BEING MADE BY AN AGENCY OF THE US GOVERNMENT.
Thinking about a refinance or purchase loan?
Call 888-966-9044 to talk to one of our Mortgage Loan Specialists or use our online tools below to get started.