Pennsylvania Cash-Out Refinancing

A Better Option For Refinancing Cash-Out in Pennsylvania

Many American families have a considerable portion of their wealth in home equity. For any number of reasons, homeowners may need to access this equity. Whether you have plans for home renovation, consolidating credit card debt, or your dream vacation, a refinancing cash-out in Pennsylvania may be your answer.

What is a Cash-Out Refinance?

A cash-out is a type of mortgage loan where the borrower can refinance by paying off their original home mortgage loan, receiving a portion of their home equity in cash, and receiving a new Refinance Cash-out in PA.

The new mortgage principal will include the old mortgage amount and the amount of cash taken out. The homeowner can then use the proceeds of the loan for whatever purpose they like.

Comparison of Cash Out Refinancing Rates By The Different Loan Types

The ultimate rate of any refinance cash-out mortgage will depend on several factors. Specifics such as your credit score, the amount of your current mortgage, the amount of equity in your home, and the amount of cash you plan to take out, will all go into the calculation of a cash-out refinancing rate.

Generally, refinance rates, including cash-out refinance rates, are at historic lows. Additionally, home prices in many areas are at an all-time high. These two factors make now an ideal time to consider a refinancing mortgage in Pennsylvania, whether a cash-out refinance or another type of mortgage refinance.

The experts can help you find the best rate, regardless of what type of refinancing you elect. We can show you the best rates from a host of lenders for the loan type that best suits your needs.

Mortgage Refinancing Cash-out

What are the goals for Cash-Out Refinance?

Families utilize cash-out refinancing options for a host of reasons. While every situation is different, some of the most common reasons for using a cash-out refinancing include:

  • Home repairs and home improvement. As families grow, so do their home needs. If your family needs another bedroom, another bathroom, or an updated kitchen, a cash-out mortgage may be an option for you.
  • Debt consolidation. It is easy to accumulate debt from credit cards, medical bills, student loans, or life’s unexpected costs. However, a cash-out refinance may allow you to use the equity in your home to consolidate that debt into a lower interest rate loan. 
  • College tuition. As the costs of higher education continue to rise, cash-out refinancing for college tuition becomes an increasingly attractive idea. s
  • Investment opportunities. If you are looking to start your own business or invest in someone else’s, a cash-out refinance can provide you with the start-up cash you need.

How Much Cash Can You Get On A Refinance?

With a conventional cash-out refinance, a homeowner can typically borrow up to 80% of the home’s value, including the amount you owe on your current mortgage.

For example, if the value of your home is $400,000, the maximum refinances amount for a cash-out loan is 80% of that amount, or $320,000. If the current mortgage balance is $100,000, the remaining balance for cash-out is $220,000.

Diverse Refinancing options in Pennsylvania

In addition to cash-out refinancing, there are several mortgage refinancing options available in Pennsylvania. Among the most common include:

  • Rate-and-term. The most common type of refinancing, the rate-and-term allows a borrower with good credit to refinance their mortgage for better terms, specifically a better interest rate. 
  • Cash-in. A cash-in mortgage is the opposite of a cash-out mortgage. A cash-in allows the borrower to pay a lump sum at the refinancing and receive a new loan. Not only can the borrower obtain better terms, but they can also build equity. 
  • No-closing-costs. These loans allow a borrower to refinance without paying closing costs, usually in return for higher monthly payments.
  • Streamline. The Streamlined refinance allows the borrower to refinance without the need for an appraisal or credit review. Generally, this option is only available for FHA, VA, or USDA-backed loans, not conventional mortgages.
There are many various mortgage brokers in Pennsylvania. To discuss your situation and determine whether a cash-out or other type of Refinancing Cash-Out in PA is right for you, contact Dynamic Funding today. Call us at 215-364-7171 or fill out our online contact form.