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Manny Oloyede | NMLS 1824463

Loan program · Refinance

Cash Out Refinance

A cash out refinance pays off your existing mortgage with a new, larger loan and returns the difference to you at closing. It converts equity into usable funds with a single fixed or adjustable payment, and it resets the terms of your first mortgage.

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Guidance by Manny

Who it is designed for

  • Homeowners consolidating higher rate debt
  • Homeowners funding a large renovation with a fixed payment
  • Investors pulling equity out to acquire another property
  • Homeowners whose current mortgage rate is at or above current market pricing

Eligible occupancy types

  • Primary residence
  • Second home
  • Investment property

Down payment or equity

Not applicable. Programs limit how much of your value you may borrow, and the limit is lower for investment property.

Major benefits

  • One payment instead of multiple obligations when consolidating
  • Fixed rate options available
  • Funds can be used for improvements, debt payoff, or investment

Important considerations

  • You replace your existing rate, which matters if your current rate is low
  • Closing costs apply and are often financed into the balance
  • Consolidating unsecured debt moves it onto your home
  • Extending the term can raise total interest paid over time

How qualification generally works

  • Appraisal establishing current value
  • Equity remaining after the new loan amount
  • Income, credit and debt review under the applicable program

Documents commonly requested

  • Photo ID and Social Security number for each borrower
  • Most recent pay stubs covering a full 30 day period, if you receive W2 wages
  • W2s and/or federal tax returns for the most recent years requested
  • Two months of asset statements for accounts used for down payment and reserves
  • Current mortgage statement, homeowners insurance and property tax information on properties you own
  • Explanations for large or non payroll deposits

Not sure this is the right mortgage?

Tell Manny what you're trying to accomplish. He can help you compare this program with other financing options that may fit your situation — your income and how it is documented, your credit and assets, the property and how you will use it, your timeline, and the guidelines that apply. Most borrowers have more than one workable path.

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Frequently Asked Questions

Programs set a maximum loan to value, and the maximum is generally lower for second homes and investment properties than for a primary residence. Your appraised value determines what is available.

It replaces your existing first mortgage, so if your current rate is well below market you should compare a cash out refinance against a HELOC or second mortgage that leaves the first loan alone.

A new, larger mortgage that pays off your existing loan and returns the difference to you in cash, secured by the equity in your home.

Programs limit the new loan as a percentage of the home's appraised value, and the limit differs for primary residences, second homes and rentals. Your available amount depends on the appraisal and qualification.

Common uses include home improvements, consolidating higher rate debt, a down payment on another property, or business or tuition needs. Some uses affect program eligibility.

Yes, the entire balance moves to the new rate, which is why the tradeoff matters if your current rate is low. Cash out pricing is also typically higher than rate and term pricing.

A cash out refinance replaces your first mortgage at a new fixed or adjustable rate. A HELOC leaves the first mortgage alone and adds a revolving line, usually at a variable rate. See the HELOC page.

Yes, with more equity typically required than on a primary residence. Conventional and DSCR options may both apply.

Related programs and next steps

Home Equity

HELOC

A revolving line of credit secured by the equity in your home.

Learn more Refinance

Debt Consolidation

Use home equity to combine higher rate balances into one payment.

Learn more Refinance

Rate and Term Refinance

Change your rate, your term, or your loan type without taking cash out.

Learn more Refinance

Investment Property Refinance

Restructure or pull equity from rental property you already own.

Learn more

Considering cash out refinance?

We will review your documents, compare the realistic options, and give you a written preapproval you can use with confidence. Nothing on this page is a commitment to lend.

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