Cash-Out Refinance Requirements
When considering a cash-out refinance, there are a few things to keep in mind in order to make sure you qualify. First, your loan-to-value (LTV) ratio must be 80% or lower. This means that your home must be worth at least 20% more than what you owe on it. Second, you'll need to have enough equity built up in your home to cover the difference between your current mortgage and the new loan amount. And lastly, your credit score will need to be good enough to qualify for a new loan.
If you're looking to take cash out of your home equity to make some home improvements or consolidate debt, then a cash-out refinance might be right for you. But before you decide to go through with it, make sure you understand all of the requirements so that you can be sure you qualify.
© 2024, Exuity