- What can I use my cash-out proceeds for?
- How much equity can I take out?
- Do I need a new appraisal?
1. What can I use my cash-out proceeds for?
Most Lenders allows you to use the proceeds from a cash-out loan for any legal purpose. However, the creation of any new liability through the use of the cash-out proceeds must be qualified in the loan process. For example, if you want to do a cash-out refinance on your current residence and use the proceeds toward a down payment on a second home or investment property, you must qualify for the cash-out refinance with the new property mortgage liability included.
Note: Lenders may requires a cash-out purpose letter for any cash-out amount greater than $5,000.
2. How much equity can I take out?
The maximum cash-out allowable on a conforming loan is $417,000 less any amount owed on the subject property. The maximum cash-out allowed on all Super Conforming products is $200,000. To find out more about cash-out refinances please contact us at: 1-732-823-5503.
3. Do I need a new appraisal?
Yes. the Lender requires a new appraisal on a cash-out refinance. The Lender will choose appraisal companies to complete the appraisal.