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Can I get cash out on a refinance to help with credit card debt?

I have decent credit (730), and I'm currently in the process to refinance a mortgage to a lower rate. Now I don't remember if my lender touched on this or I heard it elsewhere, but can I ask for money out of the refinance and use it to pay for credit card bills? Or am I limited to how I can spend that money? by anthon_110_845 from San Francisco, California. Nov 18th 2011 Reply


Tim Baudis (tbaudis)
#542 ranked lender in California - 3 contributions

You can get cash out as long as the DTI and LTV permit. The cash can be in hand or if it is for debt consolidation it can be rolled into the note.

Nov 18th 2011
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Ron Pippin (RonPippin)
#26 ranked lender in Utah - 158 contributions

One thing to remember: Asking for cash out may change some parameters on your loan such as the interest rate. Be sure to check on that with your loan officer as soon as you can

Nov 19th 2011
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You can do a cash-out refinance. The Loan-to-Value will come into play along with your Debt-to-Income ratios. Your can use the money how you wish. If you specify paying off certain bills to be able to be approved for the loan, then those bills would have to be paid with the escrow closing. Good luck, please let me know if you need anything further.

Nov 21st 2011
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Blake Kleckner (BlakeK)
#389 ranked lender in California - 257 contributions

You can do whatever you want with the money from a cash out transaction unless you specify certain debts to be paid off at the loan closing. In that case, those debts must be paid in full and the rest of the money is yours to do with as you wish. Depending upon your FICO scores, monthly gross income, monthly debt, home's loan-to-value ratio [LTV (loan amount divided by the fair market value)], and other relevant criteria , the interest rate can vary. With a 730 FICO, you should be able to get a loan with a pretty low interest rate if your home's LTV is 80% or less. Call me, Anthony, and I will walk you through the process. I can be reached 16/7 at 626-796-7712 or 626-644-2020. Click on my picture below for more info about me and my brokerage.

Dec 2nd 2011
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