Capital Home Mortgage Midland

Midland Cashout Mortgage Refinance

Midland Cashout refinance Mortgage Lender

Midland Cash-Out Refinance

In the real estate industry, refinancing is the process of exchanging an existing mortgage for a new one that typically offers more favorable terms to the borrower. Refinancing a mortgage can help you save money by lowering your interest rate, extending the length of your loan term, eliminating or adding borrowers, and, in the case of a cash-out refinance, allowing you to borrow money against the equity in your home.

What Is a Cash-Out Refinance?

One type of mortgage refinancing is called a “cash-out refinance.” It allows the borrower to turn their home’s equity into cash. Your current mortgage balance is paid off by taking out a larger mortgage, and the excess is given to you as cash.

For many Midland homeowners, using the value of their home as collateral can be a quick and painless way to get the money they need quickly.

How Does Cash-Out Refinancing Work?

In the case of a conventional refinance, the borrower stands to gain a lower interest rate or lower monthly payments but receives no cash from the transaction. With a cash-out refinance, however, you receive the difference between your old and new mortgage in cash and use it as you see fit. 

Because there is less equity in your home after a cash-out refinance, the lender is taking on more risk. This means that you may have to pay more fees, interest, or both compared to a regular refinance.

Pros and Cons of a Cash-Out Refinance

Many people can benefit from a cash-out refinance. Mortgages have low-interest rates for any kind of loan. Because your home is used as collateral, lenders assume little risk and can afford to maintain low-interest rates. 

Check out the following cash-out refinancing pros and cons before making a final decision:

  • PROS

1. Potentially lower interest rate

Though the interest rate on a cash-out refinance is typically higher than that on a purchase loan, it is still much lower than the interest rate on personal loans. They also have a more extended repayment period and possible tax advantages.

2. Pay off just one loan

Because you are refinancing, you will only have to worry about one monthly loan payment. Your only other option for borrowing against the equity in your home is a second mortgage.

3. Access to needed funds

With a cash-out refinance, you can typically borrow much more than you could with a personal loan or using credit cards. This makes it very useful with significant expenses, like a home renovation or college tuition.

4. Debt consolidation

To avoid paying thousands of dollars in interest charges, consider using the proceeds from a cash-out refinance to pay off high-interest credit cards.

  • CONS

1. Face the risk of foreclosure

You risk losing your home if you default on your payments because it is the collateral for the mortgage.

2. New mortgage terms

The terms of your new mortgage will differ from those of your initial loan. Before you accept the new conditions, double-check your interest rate and fees and the total interest you’d pay over the life of the loan. 

3. Time-consuming process

Although you won’t have to go through the same hoops as a purchase loan, underwriting for a new mortgage can still take several weeks. Refinancing may not be the best option if you need the money immediately.

4. Higher closing costs 

Cash-out refinancing, like any other type of refinancing, requires you to pay closing costs that can average between 2% and 5% of the loan amount. This can significantly reduce the amount of money you receive at closing.

5. Private mortgage insurance

You will be required to pay for private mortgage insurance if the amount you borrow exceeds 80% of the value of your home. The annual cost of private mortgage insurance ranges from 0.55% to 2.25% of your loan balance. 

Is Cash-Out Refinancing a Good Idea?

A cash-out refinance may make sense if you can get a reasonable interest rate on the new loan, depending on what you intend to do with the money. 

You should refrain from trying to refinance your home to pay for trips or a new car because you’ll get little to no return on your investment. However, a cash-out refinance might be advantageous in the following circumstances:

  • You plan to use your home’s equity to pay off more debt and lower monthly interest payments.
  • You need money for a big purchase or investment but can only get a loan from somewhere else.
  • The interest rates of alternative financing options exceed the interest rate available for cash-out refinancing.

A cash-out refinance can be an effective method for obtaining the funds necessary to accomplish a wide variety of objectives, including but not limited to eliminating debt and completing home improvement projects.

If you think a cash-out refinance is for you and are ready to start, check out what Capital Home Mortgage offers by contacting us at (432) 218-4828!

Why Midland HomeBuyers are Choosing Capital Home Mortgage
Close On Time

Complete Control from Application to Funding

Low Rates & Low Fees

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7  Day a Week Support Application to Final Mortgage Payment

Midland Mortgage Rates

Have you ever wondered why interests rates are what they are and what determines the final rate?  Why borrowers receive different interest rates? Or why rates go up and down?  Interest Rates are calculated using several factors.

  • Demand for mortgage Securities
  • Property securing the mortgage
  • occupancy of the property
  • Loan to value of the property
  • Borrower’s credit worthiness

Midland Conventional Cashout Refinance Loans

Conventional Cashout Refinance Lender
  • Primary, 2nd & Investment
  • Single & Multi Family
  • Loan to Value Restrictions
  • County Loan Limits Apply

Midland Jumbo Cashout Refinance Loans

Cash-Out Jumbo Mortgage Refinance Lender
  • Up to 3 Million 
  • Primary and 2nd Home
  • Max Loan to Value Limits Apply
  • Investor Approval

Midland Reverse Cashout Refinance Loans

Cash-Out Reverse Mortgage Refinance Lender
  • Primary Residence
  • Equity Based Qualifying
  • Credit Scores N/A
  • Minimum Age 62
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Looking to Purchase a Home? We have the loan program for you… Call today to speak with a loan officer to discuss your personal mortgage options.

  • Primary, Secondary, Investment
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  • Reverse, Renovation, Manufactured

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Want the Charm of an Older Neighborhood? But want a new place or a fresh look? Why not look at a renovation loan?  Purchase the Perfect Home and make it your own. Call today.

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  • FHA 203K Streamline or full
  • fannie mae homestyle reno
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FHA Home Loans are great for first time home buyers, buyers with less than perfect credit, or buyers needing less out of pocket.   Call today to get started.

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Proudly Serving Active Duty servicemen and women, as well as, retired and disabled veterans. Call today to speak with a VA loan officer.

  • Simply Qualifying for Veterans
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  • Lower Credit Scores Accepted
  • Manual Underwriting Allowed

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Conventional Home Loans are the best option for flexibility of property types and for mortgage loan terms. Call today to get speak to a Loan Officer.

  • Primary, 2nd Home, Investment
  • Great Rates & Low Fees 
  • Single Family and Multi-Family
  • Renovation Loan Programs

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Texas Non Conforming Loans

Jumbo Home Loans also called Non Conforming Home Loans are great options for buyers needing financing outside of agency limits.  Call today to speak to a loan officer.

  • Primary Residence and 2nd Homes
  • Higher Loan Amounts – 3 Million
  • Great Interest Rates
  • Investor Specific Guidelines

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USDA Loans are a great option for families wanting to live outside of the city.  Call today to speak with a loan officer to discuss your personal loan options.

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  • Primary Residence Only
  • Geographic Restrictions
  • Income REstrictions

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Texas HUD 184 Home Loans

HUD 184 Home Loans are solely for Native American and offer a variety of benefits.  Call today to speak with a loan officer to find out more.

  • Primary Residence Only
  • Manual Underwriting for All Loans
  • No Credit Score Requirements
  • Tribal Grants Allowed

Texas Manufactured Home Loans

Great Alternative Texas Housing

Texas reverse mortgages

Your Texas Home at Work

Reverse Mortgage Loans offer seniors options to use their home’s equity for cash or to eliminate payments. Call today to get speak to a Reverse Loan Officer.

  • primary residence only
  • simple qualifying – equity based
  • credit scores not applicable
  • Minimum age 62

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Making Texas Mortgages Possible

Looking for Non Traditional Home Mortgage Loan?  Contact a Loan Officer Today to discuss the alternative mortgage options currently available.

  • Purchase, Rate and Term & Cash-out
  • Primary, Secondary and Investment
  • Full Doc & Bank Statements Programs
  • Corporations OK

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Build Your Texas Dream Home

Want to Build? But unsure of what the future looks like? Remove the risk with a One Time Close Construction Loan.  Call today to see how a OTC loan works.

  • Primary Residence Only
  • Close Once
  • Lock Rate at Contract
  • Traditional Final Mortgage

Texas Refinance Mortgage Loans

Texas Rate & Term Refinance

Refinancing can be a hard decision and the payback can sometimes be confusing.  Call today and let our Loan Officers walk you through the process.

  • Reduce Mortgage Term
  • Lower Monthly Payments
  • Appraisal Waivers
  • Streamline Options Available

Texas Cash-out Home mortgages

Texas Equity Mortgage Loans

Cash-Out Mortgage Loans make use of the equity in your home by allowing you to refinance the current mortgage and access this equity to use as you see fit.

  • Debt Consolidation
  • Investment Opportunities
  • Home Improvement
  • Vacation or Education

Midland TExas Mortgage Team

Dale Gremillion

Sr Loan Officer
NMLS #210325

Conor Hayhurst

Branch Manager
NMLS #743506

Sam Klaburner

Sr Loan Officer
NMLS #140132

Jordan Mowrey

SR Loan Officer
NMLS 210325

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