What Happens When I Do a Cash-Out Refinance?

5 min read

A cash-out refinance is going through the process of trading your original mortgage in for a new mortgage that allows you to pull out equity gained in your house. In other words, it’s borrowing money from your own house!

You can receive the equity as cash and use it on anything—such as a remodel, college tuition, or vacation. Then, you pay back your equity every month in your new loan.

How Long Does It Take to Refinance a Home?

Cake wants to make sure a refinance is the best option for you. We take the time to evaluate your situation by looking at:

* Your current loan amount
* The total value of your home
* The plans and goals you have for your money and loan

Cake's process for a home refinance is simple and transparent, with three main steps that take as little as 30 days to complete. Our process consists of:

* Filling out the application
* Getting approved
* Closing on your new refinanced mortgage with cash in your pocket

To help speed up your cash-out refinance process, be prepared with all the necessary documents:

* W2s
* Recent pay stubs
* Current mortgage statement
* Homeowner’s insurance

Benefits to Cashing Out Equity

When you complete your cash-out process, you could take up to 80% of your home's value. For example, if you have a current loan of $200K and your home is worth $400K, you can get up to $160K in equity cash-out. Your existing loan plus your equity cash-out would equal 80% of your home value.

The process in which you refinance with equity cash-out is essentially borrowing your gains in the house now rather than waiting years for when you sell. When you pay your new mortgage, you will be paying back your original loan amount and your cash-out amount. The great news about refinancing is that you don't pay taxes on your cash-out equity, so that's a big slice of cake to take to the bank!

How Cake's Process Can Help You

You made a life-altering investment when you chose to buy a home. A cash-out refinance will allow you to get even more from your life's investment by putting cash in your pocket that you can spend any way you want.

Refinancing your home does not have to take long with how easy Cake's process is for customers. We provide pre-approvals in as little as 15 minutes! Our three-step process is ready for you to start immediately.

Our primary goal is to say yes to your mortgage needs. We want to make your cash-out home refinancing process as smooth as slicing cake. Call our professional consultants today to get started on your refinance application.