Amarillo Cash-Out Refinance Mortgage

Like most homeowners, you might put so much energy and time into your house. From keeping up with the mortgage to making improvements, your home is probably one of your most significant financial investments. If the time comes when you need money for something else — college tuition, a medical emergency, or just some extra cash, a cash-out refinance can give you the power to access the equity in your home. 

Capital Home Mortgage is a direct lender, meaning you can expect to work with an experienced loan officer who processes and underwrites your loan right here in Amarillo. We can respond to your inquiries and help determine if a cash-out refinance is right for you.

What Is an Amarillo Cash-Out Refinance?

A Texas cash-out refinance in Amarillo, also known as Texas Section 50(a)(6) of the Texas Constitution,  is when you replace your current mortgage with a new one and take out cash at closing. This refinancing results in a new mortgage loan with a higher principal balance than your previous loan. 

You can also lower your interest rates and monthly payments with a cash-out refinance. In this case, you would not receive any cash, but the monthly savings could be substantial.

Meanwhile, you can use the cash you will receive from your Amarillo cash-out refinance for anything. Some common uses include home improvements, debt consolidation, investments, or leisure like having a vacation. The cash you can take out depends on your home’s value and the equity you have built.

Amarillo Cash-Out Refinance Rules

To qualify for a cash-out refinance in Amarillo, you’ll need to meet specific requirements set by the lender. Lenders may have different needs, but most lenders, including Capital Home Mortgage, adhere to general standards.

First, you will need to have equity built up in your home. Equity is the portion of your home you own outright—it is the gap between the value of your house and the balance of your mortgage.

For example, if your home is worth $200,000 and you owe $160,000, you have $40,000 in equity. At Amarillo, we require at least 20% equity to qualify for a cash-out refinance. 

You must also have a good credit score. Generally speaking, a credit score of 620 or more is good. If your credit score is below this, you may still be able to qualify for a cash-out refinance, but you may have to pay a higher interest rate. 

Finally, your debt-to-income ratio must be 45% or less to qualify, meaning your monthly debts—including your mortgage payment, credit card payments, car payments, etc.—should be less than 43% of your monthly income. On top of that, you will need a steady income so we know you can make your monthly payments.

Get an Amarillo Cash-Out Refinance with Capital Home Mortgage

Are you thinking of getting an Amarillo cash-out refi? With Capital Home Mortgage, you’ve got experts on your side with the knowledge and experience to help you get the financing you need without the hassles. Start your cash-out refinance application by calling (806) 589-3428.