Dallas Cash-Out Refinance

Investing in real properties is a good investment in the long term. Borrowers can’t reap the rewards of this investment while paying the mortgage. If you’re in this situation, you can explore refinancing to enjoy the value of your investment. Once you build enough equity in your home, you can access additional financing options through cash-out refinancing.

Through cash-out refinancing, you can access better financing options. Capital Home Mortgage offers cash-out refinancing to interested applicants in Dallas. Please speak to our refinancing specialists to discuss possible refinancing options based on the property. Let’s discuss the salient points about cash-out refinancing.

What is Dallas Cash-out Refinancing?

Cash-out refinancing is a refinancing agreement that replaces your existing mortgage with a new one but at a more significant amount. By taking advantage of your home’s equity, you can negotiate with the lender to give you a bigger mortgage than the outstanding balance. You can use the extra cash you get from the mortgage for any purpose. There are no lender-imposed limitations.

What to Expect in Cash-out Refinancing

     – You can’t tap all of your home equity: Lenders often require that you keep 20 percent of your home equity under conventional refinancing. The exception is if you’re getting VA refinancing, where borrowers can access or withdraw 100 percent of their home equity.

     – A home appraisal is required: A home appraisal will determine the current appraised value of your home to determine your home equity. For example, let’s assume that you have 40 percent home equity and the appraised value is $500,000. Hence, the value of your home equity is $200,000, where you can tap $160,000 at max if we follow the 20-percent requirement.

     – There will still be closing costs involved: Just like any mortgage, there are still closing costs in a cash-out refinance. These costs include lender fees, appraisal, and other necessary expenses to process the mortgage. 

     – There’s a three-day period: Lenders must hold out the funds for three days before receiving them. If you have a change of heart, you can exercise the right of rescission, where you can cancel the mortgage agreement within three days without penalties.

Texas Cash-out Refinancing Rules

You need at least a 620 credit score to qualify for cash-out refinancing, but a higher score puts you in an advantageous position. A score of 620 is ideal but not a guarantee of approval. You also need to have at least 20 percent equity in your home. They may require a higher equity percentage in specific circumstances. Finally, you also need to pay attention to your debt-to-income ratio. Lenders have specific requirements but keep yours below 40 percent for higher chances of approval.

Apply for Cash-out Refinancing in Dallas

Use cash-out refinancing to get extra cash for whatever purpose. Our Dallas mortgage specialists are here to provide all the assistance you need from start to finish. Speak with our loan officers by calling (214) 372-0015.