FHA Cash Out Refinance
Turn Your Equity Into Cash
Turn Equity Into Cash
Available in 48 States
Consolidate Debt
Top FHA Cash Out Refinance Lender for Home Owners
Mutual of Omaha Mortgage
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Cash Out / Rate & Term Refinance Options
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What is a FHA Cash Out Refinance?
A cash-out refinance is a type of mortgage refinancing where you replace your existing home loan with a new one for a larger amount. The difference between your new loan amount and the remaining balance on your current mortgage is paid to you in cash.
What are the Features of a Cash Out Refinance?
Access to Home Equity: Borrow against the equity you’ve built in your home and receive cash to use for various purposes like home improvements, debt consolidation, or major purchases.
Single Loan Solution: Replaces your existing mortgage with one new loan, simplifying your financial obligations by avoiding multiple payments.
Lower Interest Rates: Typically offers lower interest rates compared to personal loans or credit cards, making it a cost-effective way to access funds.
Potential Tax Benefits: Interest on the new loan may be tax-deductible if the funds are used for home improvements (consult a tax advisor for details).
Debt Consolidation Opportunities: Pay off high-interest debt by consolidating it into your mortgage, potentially reducing your overall monthly payments.
What are the Pro's and Con's of a Cash Out Refinance?
Benefits of a Cash Out:
Access to Significant Funds: If your home is worth $400,000 and you owe $250,000, you could potentially refinance for $300,000, giving you $50,000 in cash for home improvements, investments, or other needs.
Debt Consolidation: Consolidate credit card or loan debt into your mortgage. This simplifies payments and reduces your total monthly financial obligations.
Increase in Home Value: Re-Investing a cash-out refinance into renovations (like a kitchen remodel or adding a bathroom) could increase your home’s resale value depending on the project.
Flexible Use of Funds: Use the cash for various needs, such as paying for college tuition, starting a business, or handling unexpected medical expenses.
Improved Loan Terms: Replace your existing mortgage with one that has better terms, such as a fixed-term loan instead of an adjustable-rate loan, or a shorter repayment timeline.
Drawbacks of a Cash Out:
Higher Loan Balance: Increasing your loan amount means higher monthly payments. For example, if your current mortgage payment is $1,500 and you add $50,000 to your loan, your new payment could be around $1,800, depending on the program, taxes, and insurance.
Closing Costs: You could pay 2-5% of the new loan amount in closing costs. You have the option to pay them up front or roll them into your new loan, which would reduce the amount of cash you receive.
Reduced Equity: Tapping into your home equity reduces the financial cushion you have in your home. If property values drop, you could have little or no equity left, making it harder to sell or refinance again.
Mutual of Omaha Mortgage, Inc., NMLS ID 1025894. 3131 Camino Del Rio N 1100, San Diego, CA 92108. AL Consumer Credit License 22123; AK Broker/Lender License AK1025894. AZ Mortgage Banker License 0926603; AR Combination Mortgage Banker/Broker/Servicer License 109250; Licensed by the Department of Financial Protection & Innovation under the CA Residential Mortgage Lending Act, License 4131356; CO Mortgage Registration 1025894; CT Mortgage Lender License ML-1025894; DE Lender License 028515; DC Mortgage Dual Authority License MLB1025894; FL Mortgage Lender Servicer License MLD1827; GA Mortgage Lender License/Registration 46648; HI Mortgage Loan Originator Company License HI-1025894; ID Mortgage Broker/Lender License MBL-2081025894; IL Residential Mortgage Licensee MB.6761115; IN-DFI Mortgage Lending License 43321; IA Mortgage Banker License 2019-0119; KS Mortgage Company License MC.0025612; KY Mortgage Company License MC707287; LA Residential Mortgage Lending License 1025894; ME Supervised Lender License 1025894; MD Mortgage Lender License 21678; MA Mortgage Broker and Lender License MC1025894; MI 1st Mortgage Broker/Lender/Servicer Registrant FR0022702; MN Residential Mortgage Originator Exemption MN-OX-1025894; MS Mortgage Lender 1025894; MO Mortgage Company License 21-2472; MT Mortgage Broker and Lender License 1025894; NE Mortgage Banker License 1025894; NV Exempt Company Registration 4830. Licensed by the NH Banking Department, Mortgage Banker License 19926-MB; Licensed by the NJ Banking and Insurance Department. NJ Residential Mortgage Lender License 1025894; NM Mortgage Loan Company License 1025894; NC Mortgage Lender License L-186305; ND Money Broker License MB103387; OH Residential Mortgage Lending Act Certificate of Registration RM.804535.000; OK Mortgage Lender License ML012498; OR Mortgage Lending License ML- 5208; PA Mortgage Lender License 72932; RI Lender License 20163229LL. RI Loan Broker License 20163230LB; SC BFI Mortgage Lender/Servicer License MLS-1025894; SD Mortgage Lender License ML.05253; TN Mortgage License 190182; TX Mortgage Banker Registration 1025894; UT Mortgage Entity License 8928021; VT Lender License 6891; VA Mortgage Broker and Lender License, NMLS ID #1025894 (www.nmlsconsumeraccess.org); WA Consumer Loan Company License CL-1025894; WV Mortgage Lender License ML-1025894; WI Mortgage Banker License 1025894BA; WY Mortgage Lender/Broker License 3488. Toll Free #: (877) 978-1922. Subject to Credit Approval. For licensing information, go to: www.nmlsconsumeraccess.org
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