Cash-Out Refinance Loans in California
What is a cash-out refinance?
A cash-out refinance replaces your current mortgage with a new one for a higher amount and gives you the difference in cash. Homeowners use it for debt consolidation, home improvements, tuition, or building reserves.
How a cash-out refinance works
Loan approval: We review credit, income, assets, and your home value.
Loan amount: Based on your equity and the program’s loan-to-value limits.
Receive cash: You get funds at closing after your old loan is paid off.
Repay the loan: You make one new monthly payment at the new rate and term.
Who this is for
You have equity, steady income, and you want a single, simple payment. Debt consolidation is common because mortgage rates are often lower than rates on credit cards and personal loans.
Benefits and trade-offs
Benefits: Lower total interest than revolving debt, one payment, potential tax deductibility of mortgage interest.
Trade-offs: Closing costs, a new payoff timeline, and your unsecured debts become secured by your home. I show you both paths side by side so you can decide.
Common questions and clear answers
When should I do a cash-out refinance?
Do it when the savings on high-interest debt outweigh closing costs and the new mortgage still fits your budget.
How much cash can I get from a cash out refinance?
Do it when the savings on high-interest debt outweigh closing costs and the new mortgage still fits your budget.
When should I do a cash-out refinance?
It depends on your equity and program limits. Conventional loans often allow up to 80 percent loan-to-value. Some programs vary.
What credit score do I need for a cash out refinance?
Stronger credit can improve pricing, but conventional loans can go as low as 620 and FHA loans can go as low as 580 sometimes lower. If your score needs work, I will map out steps and show how that changes your rate and payment.
Are cash-out refinances taxable?
The cash itself is not income. Mortgage interest may be tax deductible if the funds are used to buy, build, or substantially improve the home. Ask your tax professional
Are cash-out refinances a good idea for debt consolidation?
They can be if the math pencils out. We compare keeping your debts as-is versus consolidating into one mortgage so you see total cost and payoff time.
Are cash-out refinances a good idea for debt consolidation?
They can be if the math pencils out. We compare keeping your debts as-is versus consolidating into one mortgage so you see total cost and payoff time.
What are typical closing costs for a cash-out refinance?
Costs include lender fees, third-party fees, taxes, and prepaid items. I provide a written estimate before you decide.
Do I need an appraisal for a cash out refinance?
Most cash-out loans require an appraisal to confirm value. Some files may qualify for a waiver.
Do I need an appraisal for a cash out refinance?
Most cash-out loans require an appraisal to confirm value. Some files may qualify for a waiver.
Do I need an appraisal for a cash out refinance?
Most cash-out loans require an appraisal to confirm value. Some files may qualify for a waiver.
Can I cash-out refinance a paid-off home?
Yes. You can take a new mortgage and receive cash at closing.
Can I cash-out refinance a second home or investment property?
Yes, with stricter terms and lower loan-to-value limits than a primary residence.
Can I cash-out refinance a manufactured home?
Interest may be deductible when funds are used for qualified home improvements. Check with your tax professional.
How long does a cash-out refinance take?
Most close in 15 to 25 days depending on appraisal timing and documentation.
Links
Contact
Armando Novelo
NMLS 237243
Super Mortgage Bros
1900 W. Garvey Ave S. #100
West Covina, CA 91790
Phone: (626) 200-1838
Next Workshop
I agree to be contacted by Super Mortgage Bros via call, email and text. To opt out, you can reply “stop” at any time or click the unsubscribe link in the emails. Message and date rates may apply.
Message frequency varies
© 2024 Super Mortgage Bros. Super Mortgage Bros. | All Rights Reserved | Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act. Site Development by: GoodForm Media. Golden Empire Mortgage, Inc. ("GEM") [NMLS ID No. 2427] is a California corporation whose principal business office is located at 1200 Discovery Drive, Ste. 300, Bakersfield, California 93309. GEM is a residential mortgage lender and servicer Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act. under license no. 413-0360. https://www.nmlsconsumeraccess.org