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Mortgage-Refinance Loan Can Put Cash in Your PocketDo you need cash? Here's a mortgage for you. If you are not in a good position to take an equity line of credit on your home, because you have not built enough equity or a poor credit situation is making bankers steer clear of you, altogether, there is another option -- the cashout refinance. This loan does what the equity line does in most cases, but it is not an interest-only loan, and it has conventional mortgage terms. The advantage for people without enough equity and less than perfect credit is you can get at what little equity you do have by refinancing to a new conventional mortgage, taking cash out at the close of the loan. Here's how it works. Let's assume you have a home valued at $110,000. You owe $86,000, and you would like to get $8,000 in cash to pay off two small credit cards with high interest and to do some minor rehab work on you home. With your B credit rating, banks won't give you 100 percent of your equity or even 95 percent, so an equity line won't work. However, you will qualify for a 90 percent cashout refinance loan. In order to keep your costs down, you combine this strategy with another one, an adjustable rate mortgage, and this helps you maintain a low monthly payment. You need about $4,000 to close the loan (remember it's a conventional mortgage with all the closing costs -- equity loans can be closed with no costs at all). The closing costs, though, will be financed into your new loan, so you don't have to come out of pocket with any money. So, you get a new mortgage for $99,000, which pays off your old fixed rate mortgage loan, covers the closing costs and, best of all, leaves you with $9,000 in cash -- $1,000 more than you actually need. The ARM rate is probably one percent less than your old fixed rate, so your payment will stay close to what it was. Plus, you eliminate monthly credit debt, so you have created even more cash! This is just an overview of a very powerful loan. Mark Barnes is the author of the new novel, The League, the first work of fiction, based on fantasy football. He is also an investment real estate and home loan finance expert. Learn more about his suspense thriller at http://www.sportsnovels.com Get his free mortgage finance course at http://www.winningthemortgagegame.com
Today's mortgage refinance rates see little change as market holds steady | April 1, 2021 Fox Business Today's Mortgage and Refinance Rates: April 3, 2021 | Rates Bump Up Business Insider Today's mortgage refinance rates stop rising, hover near historical lows | March 16, 2021 Fox Business Planning on refinancing? What you need to know first Oklahoman.com Today’s refi rates trends higher | April 7, 2021 Bankrate.com Looking to maximize mortgage refinance savings? Do this now FOX 6 Milwaukee Today's Mortgage and Refinance Rates: March 14, 2021 | Rates Go Up Business Insider Today's Mortgage and Refinance Rates: March 23, 2021 | Rates Tick Up Business Insider Are we seeing a cash-out refinance crisis? HousingWire Mortgage And Refinance Rates Today, Mar. 16 | Rates unpredictable The Mortgage Reports Down payment for a $300,000 house | What are your options? The Mortgage Reports New American Funding Mortgage Review 2021 Business Insider When is the Right Time to Refinance to Pay Off Debt? - RealtyBizNews: Real Estate News RealtyBizNews Mortgage Refinance Options & Types | Refinance Chase News & Stories Best mortgage refinance lenders in 2021 Bankrate.com What It Means to Refinance Your Mortgage Business Insider Everything You Should Know About The New Mortgage Refinancing Fee That Goes Into Effect Dec. 1 Forbes 3 signs you should refinance your mortgage right now Fox Business Mortgage refinance applications soar despite a new fee that increases the cost Pittsburgh Post-Gazette Mortgage and real estate news this week: Bids over list price surge, and waiving inspections Bankrate.com Today’s mortgage refinance rates mixed — one key rate drops while another rises | March 2, 2021 Fox Business Can refinancing a mortgage hurt my credit score? Fox Business 15-Year Mortgage Refinance Rates for April 2021 NextAdvisor Today's Mortgage and Refinance Rates: February 8, 2021 | Rates Up Business Insider Mortgage refinance rates continue hitting record lows – here’s how to get the best deal now Fox Business
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