Even if you have a conventional mortgage or USDA loan, the FHA cashout can still be a great option for you. Actually, refinancing your VA loan into an FHA loan can be a great way to reclaim all of your benefits. There are pros and cons to an FHA cash out, so be sure to talk with a broker from AmeriSouth about your options.
FHA Cashouts On the Rise
New data from government-backed Freddie Mack shows cashout refinances account for more than 60% of all refinances made last quarter, marking the highest percentage of cashout refinances since 2008. The current resurgence is the result of low mortgage rates and the rising value of homes, but it’s the safety angle that’s the most interesting.
Cashout refinances unlock a homeowner’s home equity, converting a liquid asset into cash, which can be used for anything. Remember, home equity is an asset, and the typical refinancing household has witnessed a 60% increase in home value since the date of last mortgage. That has created a massive asset class overweight for a lot of US homeowners.
In the last decade, exposure like that made for some long-term damage. In this decade, homeowners are playing it differently. So, if your home is up big in value, talk to AmeriSouth and at least discuss your FHA cashout options.
Free Up Some Much Needed Cash in Your Home’s Equity
If you are a homeowner who is looking for a way to consolidate debt, pay off a loan, or even take the dream vacation you’ve been waiting for; an FHA cashout refinance may be the perfect solution for you. It will let you borrow against the equity in your home, and you will be free to choose what to spend it on.
For example, if you have several credit cards where the balance is climbing due to the high interest rates, you could complete a cashout refinance and borrow that money at a lower interest rate to pay off the card debt. This money can even be used to pay off an existing auto loan. There are some credit score requirements with an FHA cashout, but the requirements are minimal since a low credit score will not count against your eligibility.
Give Us a Call to Discuss Your Refinance Options
Speak to a broker at AmeriSouth today as there are some pitfalls with this type of refinance. For example, you will set your mortgage back by 15 – 30 years with an FHA cashout refinance. Therefore, if you are close to paying off your mortgage, this should not be a viable option.
FHA cashout refinancing is a great product because it lets you borrow more than you already owe on your mortgage presently. Then, after the mortgage and all the costs are paid, you receive the extra cash. So, if you are thinking about doing work on your home, consolidating your bills, your paying for children or college, or anything else, the FHA cashout program is an excellent way to get cash out of your home.