What is Refinancing?
When your interest rate is higher than you’d like, your payments are too high or you have a need for cash, refinancing can help. With a good refinance program, you could:
Reduce your Interest Rate
Cash out Equity for Home Improvements
Lower your Monthly Payments
When you’re considering refinancing, be sure to know why you want to refinance. There are good reasons and frivolous ones; you should only refinance when the pros outweigh the cons. As the customer, you should be aware of the benefits and the penalties involved. There are many rules and information tied in with your current mortgage that may seem impossible to understand unless you are versed in mortgage/real estate law. Even if this is the case, it is in your best interest to have a complete understanding of your current mortgage. There may still be penalties involved with paying of your loan early.
Cash Out Refinance
Cashing out refers to the refinancing of a loan where the borrowers will borrow money on their own home. If a home is appraised at $100,000 and the borrower’s outstanding mortgage loan is $60,000, it is possible to enter into an 80% cash-out refinance transaction for a loan of $80,000 (80% of $100,000). The new mortgage of $80,000 will pay off the $60,000 loan and leave $20,000 cash-out to the borrowers.
By cashing out on your home, you can obtain cash on the value of your own home to pay off debts or upcoming expenses. The refinance transaction can also provide you with a better mortgage loan interest rate that will save on your monthly mortgage payments during the loan. And it’s tax-deductible.
How can we help?
If you are looking for this type of refinancing, Omega. can find a program suited to your financial needs. We offer cash-out programs for Owner-occupied homes, Non-owner occupied homes, and No income verification with low, affordable rates.