A cash-out refinance will give you access to the equity in your home. The amount of cash you can receive is based on the difference between the current value of your home minus the remaining balance on the loan. You basically refinance the mortgage for more than the current balance and less than the current value.
Most cash-out refinances will require a home appraisal. The appraiser will establish the value of your home, which determines the amount you’ll be able to cash out. In some cases, your home may be worth more than you think, so having a home appraisal may result in a pleasant surprise. If your original mortgage was through Ark, we’ll reimburse the cost of the appraisal as part of our Lifetime Guarantee.
Depending on your loan type, you can take out the difference between 75%-80% of the home’s current value versus the remaining balance or the entire difference between your home’s current value versus the remaining balance. To get an exact figure, schedule a consultation with a Personal Mortgage Advisor.
Yes. FHA loans will allow you to cash out up to 85% of the property’s current value and require less documentation than a conventional cash-out refinance. The VA loan process is similar to the FHA, but a VA loan cash-out refinance will allow you to cash-out up to 100% of your home’s current value. If you or your spouse is either a veteran or an active in the military, a VA loan may be a great option.
Calculate your potential new monthly mortgage payment in seconds with this handy calculator, so you can ensure you’ll still have enough money left over each month for your other expenses. Choose your rate and term—you might be surprised to see how affordable it is to own your home sooner than you thought. Note how much interest you’ll pay over the life of the loan, and enter prepayment amounts to calculate their impact on your overall expenditure.