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How much does a "cash-out" effect your refinance rate?

I was told it could be as high as 1/2 point is that correct? by Spence_546_104 from San Ramon, California. Feb 9th 2012 Reply


Crestico Funding (CresticoFunding)
#312 ranked lender in California - 337 contributions

Hello Spence,a Cash-out transaction could increase your interest rate anywhere from 0.125% to 0.375% depending on your fico score, Loan to Value and Loan Amount, however there are also ways to do a Cash-out refinance without increasing your interest rate, if you need more information please contact Houtan Hormozian @ 310-933-4748 or email Houtan.Hormozian@Crestico.com

Feb 9th 2012
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Don Maher (don@ucloan.net)
#371 ranked lender in California - 30 contributions

SpenceIt varies depending on they type of loan ie: FNMA, FHA, Portfolio, as well as other factors like credit score and LTV. Most of the time we build the fee in to the rate. You need to have an analysis done for you similar to the one on this link http://www.donmaher.com/docs/analysis.pdf Call with questions or to get a personal loan analysis at 800-736-0565. Thanks. Don

Feb 9th 2012
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Don Maher (don@ucloan.net)
#371 ranked lender in California - 30 contributions

but it can range from 0.00% to 1.00% in increased rate.

Feb 9th 2012
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

Much more info is required to properly answer your question.. type of property, loan amount, credit score etc... but in general, it can range from .5% to a full 1%... WilliamAcres.com

Feb 9th 2012
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Peter Torneanu (peter@loandoctors.us)
#80 ranked lender in Arizona - 10 contributions

Altough there are several factors involved, .5% seems a bit high. The general rule is that the better your score the less it will cost you on most programs. If you would like to call me I can give you a better idea on how much it should be. My number is 480-788-7607 or email me at peter@LoanDoctors.usPeter T

Feb 9th 2012
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Blake Kleckner (BlakeK)
#386 ranked lender in California - 258 contributions

Hi Spence: A cash out refinance doesn't necessarily have to affect the iterest rate at all if you are willing to pay a loan cost adjustment that can range from 0% to 3% of the loan amount (if 1% on a $250,000 loan = $2,500) depending upon your FICO score and your home's LTV. If you prefer not to pay the adjustment cost, your loan's interest rate can be increased to compensate for it. It is very conceivable that this increase could be almost 1% if your FICO score is low and your home's LTV high, or there could be no increase if your FICO score is high and your home's LTV is low. Obviously, much more information is needed to determine this. Give me a call 16/7, or email me, and I'll be happy to explain everything to you in detail. To learn more about me and our mortgage brokerage, click on my picture. When the next page pops up, click on "Website" and you will be redirected to ours. We work exclusively in CA and get loans done fast, typically in less than 30 days, at low interest rates and costs. Representing 39 quality lenders that offer more than 1,000 loan programs, we definitely have something for everybody.

Feb 10th 2012
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Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 1,823 contributions

Taking cash out during a refinance almost always increase the costs of the new loan. When you do a loan, the interest rate you get is a combination of current market pricing plus adjustments for different factors you present to the lender. These adjustments can be positive or negative, and impact the rate you end up with. Typically, a higher LTV, lower score, and lower loan amount will have pricing adjustments that increase the cost or rate, while lower LTV, higher scores and larger loan amounts have adjustments that are more favorable. The type of property can also impact the adjustments. The net increase in your loan rate can range anywhere between 1/8% and 1.5% depending on all your factors. The best way to find out is to talk to a local Mortgage Banker/Broker, rather than one of the big banks. Unlike a bank employee, who is most likely just an order taker, a Mortgage Broker/Banker is Trained, Tested and Licensed in all aspects of Mortgage Origination. He/She will have access to loan products of many lenders, not just those of one bank, and can properly guide you. But more importantly, He/She is trained to take a look at the various different options available to you and guide you into the one that makes the best sense for your situation. Don't forget to check out your selected Mortgage Originator at the National Mortgage Licensing System at www.NMLSConsumerAccess.org ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com

Feb 10th 2012
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