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Refi/Cashout Process

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The Cash Out Refinance Process

Learn how to get cash from your home's equity

Determine Goal

Deciding how you will use the cash from a cash out refinance is a great first step. You can use the cash to pay for renovations that make your home more comfortable and increase its value. You might use it for investments like a college education or starting a business. Many homeowners use the cash to consolidate higher interest debts. Whatever your goal, figure out how much money you’ll need!

Also think about which loan type is right for you. At Freedom Mortgage, we can help you refinance and get cash from your home’s equity with these loans:

FHA cash out refinances

  • All qualified homeowners are eligible
  • Maximum loan-to-value ratio often 80%
  • Mortgage insurance required
  • No funding fee
Learn More

Conventional cash out refinances

  • All qualified homeowners are eligible
  • Maximum loan-to-value ratio often 80%
  • Mortgage insurance required with home equity less than 20%
  • No funding fee
Learn More

VA Cash Out Refinances

  • Only qualified veterans, military personnel and surviving spouses are eligible
  • Maximum loan-to-value ratio often 90%
  • Mortgage insurance not required
  • Most veterans will pay a funding fee of 2.3% to 3.6% of loan amount
Learn More

Estimate Cash

The next step is to figure out how much cash you might be able to borrow from your home’s equity. You can figure out the value of your home’s equity by taking the current value of your home and subtracting from it how much you owe on your mortgage. For example, if your home is worth $300,000 and you owe $150,000 on your mortgage, then you have $150,000 in home equity.

Note that you can’t usually borrow the full value of your home’s equity with a cash out refinance. Instead, you can only borrow a portion of the value based on the maximum loan-to-value ratio of the mortgage. By refinancing, the total finance charges may be higher over the life of the loan. Use our calculator to estimate how much cash you might get!

How much cash can you get?

The amount of cash you might get from a cash out refinance depends on the value of your home’s equity and the loan-to-value ratio of your refinance. Change the default values to personalize your estimate!

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Calculator assumes your loan-to-value ratio is 80%. This calculator is made available as a self-help tool for your personal use. We do not guarantee its accuracy or applicability to your individual circumstances. Resulting calculations are for illustrative and informational purposes only and are not intended as investment or financial advice. Consult a qualified financial advisor before making important personal finance decisions. To get a better understanding of the benefits of refinancing, speak with a loan advisor at Freedom Mortgage.

You might qualify for $50,000

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Apply for Refinancing

To get a cash out refinance, you’ll complete an application and provide current credit, income, and financial information. We will probably ask for a new home appraisal to estimate the current value of your home. Freedom Mortgage’s experienced Loan Advisors can answer your questions and help you complete your cash out refinance application on the phone! Call us today at 877-220-5533.

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How to apply for a mortgage

About your mortgage application

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What to expect after the mortgage application

Learn More about the mortgage loan process

Close Your New Loan

Once you complete your application, we will send you documents that include your estimated interest, loan terms, and other information about your cash out refinance. These documents are called “Initial Disclosures.” We’ll need you to review and sign these disclosures.

Once you’ve signed these disclosures, we’ll begin the mortgage underwriting process and decide whether we can approve your application. When you are approved, we will send you a set of documents called “Closing Disclosures” that include information about your new interest rate and loan terms, new principal balance and monthly payment, how much you will pay in closing costs, and how much cash you will receive.

Once you review and sign the Closing Disclosures, we can schedule your closing date. Often, we can bring the documents you need to sign to close your loan to your home or another location you select. Other times, you may need to go to the offices of a title company or another business to sign your closing documents.

You will typically get your cash three business days after your cash out refinance closes. We will deposit this money directly into your bank account or overnight your check.

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Practical tips for closing on a mortgage

Advice that can help you avoid hassles and delays

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What are closing costs?

Find out what to expect to pay on closing day

Our experienced Loan Advisors can help you get cash!