As housing values all across the country increase, the opportunities to get cash out refinances are increasing too. For homeowners with substantial equity in their homes there are numerous reasons to be interested in a cash out refinance: Home improvements, increasing cash reserves, paying down more expensive debts, etc. The benefit of a cash out refinance is it allows borrowers to tap into the equity of what is likely their biggest asset, their home, at an interest rate that is normally lower than they could get in any other way.
There are several government-backed programs that allow for cash out refinances. With Fannie Mae and Freddie Mac you can normally get up to 80% cash out without adding mortgage insurance. FHA allows up to 85% cash out. And military veterans can get up to 100% cash out through the VA mortgage program.
Contact us in the sidebar today to learn more about your options with government-backed cash out refinance programs.