Cash Out Refinance Is Now The Time

Dated: 10/24/2019

Views: 139

What is a cash-out refinance?

The cash-out refinance definition involves a refinance, where you first can take advantage of a better rate in order to lower your monthly mortgage payment.* From there, a cash-out refinance allows you to tap into the equity you’ve built from making payments on your current mortgage. This means cold👏🏽 hard👏🏽 cash👏🏽 in your pocket (if you qualify, of course).


Cash out refinance rules

Most rules for a cash-out refinance will depend on a few things, which may include:

      • Which lender you use

      • Which loan product you want to refinance

      • Your credit/financial standing

Things you will need to keep top of mind? Most lenders will need to ensure that you’ve owned your home for a specific period of time, depending on state and lender. You’ll also want to consider potential fees you’ll need to have ready to close the cash-out refinance deal. Though for further insight into rules and requirements, it’ll be best to contact your local loan officer to give you a personalized view.


what is a cash-out refinance

Cash-out refinance pros and cons

With a cash-out refinance, you get to tap into one of the biggest perks of homeownership: equity building. Also, you may be able to:

      • Consolidate debt

      • Lower your monthly payments* and

      • Free up your budget to alleviate financial strain

Some cons:

      • You may be subject to a new term (a new time frame to pay your mortgage in)

      • You’ll probably need to pay closing costs for the refinance

      • Depending on your situation, because this account will now be closed, it may lower your age of credit history, which could impact your credit score

Overall, you’ll need to examine your scenario and whether or not the benefits of refinancing, and a potential cash-out, is worth the investment. Conveniently enough, a Movement loan officer can help you through this process.


Cash-out refinance rates

The new rate from a cash-out refinance will be dependent on the outcome of your lender, loan product and credit (and a few other factors). Making sure your lender is securing you the best rate possible is key. However, rates are (as of October 2019) at a historic low. So if you purchased a home a year or more ago, chances are you could be one of thousands of people eligible to benefit from a cash-out refinance. You always have the option of a commitment-free conversation with a lender, like Movement, to see if it’s a good fit for you.


A cash-out refinance could be the answer to your budget struggles, if you qualify. It offers some great potential benefits, and no one was ever mad about storing some extra cash in their back pocket. But ultimately, you’ll need to make sure the cash-out refinance is worth the effort.

Talk to a loan officer today.

*By refinancing the consumer’s existing loan, the consumer’s total finance charges may be higher over the life of the loan.



AJ Ramirez serves as a contributor to content creation for Movement's marketing department. When he's not furiously typing away or trying to pitch illustrious ideas, you can find him jet-setting to try to settle his wanderlust and FOMO, taking a class at the local dance studio, or crushing yet another Harry Potter trivia.

Latest Blog Posts

Cash Out Refinance Is Now The Time

What is a cash-out refinance? The cash-out refinance definition involves a refinance, where you first can take advantage of a better rate in order to lower your monthly mortgage.*

Read More

Five Steps To Find The Perfect Home For Aging In Place

Five Steps to Find the Perfect Home for Aging in PlaceSometimes, when aging in place, the best thing seniors can do is look into buying a new home. You shouldn’t feel limited to your current

Read More

July Market Update

With a cut in interest rates a near certainty this month, the Dow Jones Industrial Average skyrocketed to 27,000 for the first time ever. The Dow rallied this week on the testimony of Federal

Read More

Interest Rates Are Continuing To Drop

Mortgage rates have dropped once again. According to Freddie Mac, the 30-year fixed-rate mortgage average fell for the seventh time in the last nine weeks to 3.73%. That is its lowest level since

Read More