FHA Cash Out Refinance Loan

FHA Cash Out Refinance

SET YOURSELF FREE WITH AN FHA CASH OUT REFINANCE LOAN!
With interest rates at their current levels, now is the perfect time to wipe away your high interest debt to get a clean start or pay for other expenses such as medical debt, home improvement, student loans or any other major expenses that you need paid.

Examples of high interest debt that can be paid:
Credit Cards, HELOC's, Auto Loans, Motorcycle Loans, Boat Loans, Business Loans, Any Loans!

With an FHA Cash Out Refinance, you access up to 85% of your homes value to pay off your high interest debt or get cash to use any way you choose to.

And the best part of consolidating your debt into an FHA loan, The interest is tax deductible! That's right, everything that you pay in interest you can deduct. You wont see that for credit card debt, auto loans or student loans.

Look at this example of how much money you could save:

-This is not including the interest tax deduction.

Estimated Interest Rate

Current Balance

Monthly Payment

Credit Card

23%

$17,000

$680

HELOC

12%

$25,000

$358

Car Note

$15,000

$399

Current Mortgage

7.5%

$180,000

$1,258

Total Debt

$237,000

$2,695

New FHA Mortgage

$237,000

$1,272

(*5.126% APR)

Monthly Savings With a New FHA Loan

$1,423

Yearly Savings With a New FHA Loan

$17,076

WOW! Now also look at the potential tax deduction:

Tax Deduction

Year 1

$11,770

Year 2

$11,591

Year 3

$11,403

(Calculated on $237,000 Loan, 33% Tax Bracket)

Imagine the financial freedom that saving this much money can bring to you. Freedom from credit card debt and creditors, freedom to renovate your home, freedom to pay off medical expenses or student loans, even freedom to buy a car, boat or motorcycle and deduct the interest.

With current interest rates, it doesn't pay to wait. Think of the interest that could have been saved this month.

Call us at 1-877-828-4FHA or Complete Our Online Application today!

What is a Cashout Refinance and how much can I refinance?
The maximum amount for an FHA Cash Out Refinance Loan is determined by:

Maximum Loan Amount: The maximum loan amount allowed for an FHA Refinance Loan varies from county to county. The highest maximum FHA Refinance Loan right now is $729,750. The lowest maximum amount available in any county is $271,050. To see what the limit is in the county in which you're interested, visit the following site https://entp.hud.gov/idapp/html/hicostlook.cfm. This site lists U.S. territories as well as states.

Maximum Financing: The maximum financing for an FHA Cash-Out Refinance 85% of the current appraised value of the property.

What factors determine if I am eligible for an FHA Cash Out Refinance Loan?
To be eligible for an FHA Refinance Loan, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income (31% ratio). Your credit background will be fairly considered. At least a 620 FICO credit score is required to obtain an FHA approval through ENG Lending. You must also have enough income to pay your housing costs plus all additional monthly debt (43% ratio). These ratios can be exceeded somewhat with compensating factors. See more on FHA Refinance Loan Requirements.

Can I get an FHA refinance loan after bankruptcy?

If you have been discharged from a Chapter 7 bankruptcy for two years or more, you are eligible to apply for an FHA refinance loan. If you are in a Chapter 13 bankruptcy and have made all court approved payments on time and as agreed for at least one year, you are also eligible to make an FHA loan application.

*Interest rates are simply the price of funds available for borrowing and lending. As with other prices, current interest rates are set by forces of supply and demand. The equilibrium interest rate, or price of loanable funds, is the one at which the quantities of such funds demanded and supplied are equal.

The interest rate above is the national FHA Mortgage Rate, updated 02/11/2009. These are indicative rates only and are not meant to be any type of guarantee of rates currently available from ENG Lending.

Please note that the rate and payment provided in the figures above are assuming the following: all closing costs paid, LTV of 80% or less, and credit score over 700 points. The quote is in no way indicative of the rate you may qualify for, nor is it intended to constitute investment advice. Please contact one of our mortgage specialists or fill out our 1 minute pre-qual application and a certified loan officer will review and obtain the best possible rate and payment for your situation.

FHA Refinance Loan Programs

Rate/Term Refinance (No Cash Out)
The FHA Rate/Term Refinance is for borrowers who currently have a conventional fixed rate or ARM mortgage and wish to refinance into an FHA Mortgage. This program helps borrowers who wish to have a stable, FHA insured fixed rate mortgage.

FHA Cash-Out Refinance
A FHA Cash Out Refinance Loan is perfect for the homeowner who wants to access the equity that they have built up in their home. This program is beneficial to homeowners whose property has increased in value since it was purchased.

FHA Streamline Refinance
The FHA Streamline Refinance is designed to lower the interest rate on a current FHA mortgage or convert a current FHA adjustable rate mortgage into a fixed rate. An Streamline FHA Refinance Loan can be performed quickly and easily. It requires much less hassle and paperwork than a normal refinance including no credit check, no appraisal, no qualifying debt ratios and no income verification.

FHA Refinance Loan FAQ's

Are there any out of pocket expenses for an FHA Refinance Loan?
Generally, there are no out-of-pocket expenses incurred with an FHA Home Refinance, other than the appraisal fee. FHA Refinance Guidelines allow all other closing costs, including lender fees, to be included in the new loan amount, provided that the home will appraise for that amount.

Can I take cash out of my home with an FHA Refinance?
Yes, with an FHA Cash Out Refinance, the home owner obtains a new FHA Mortgage Refinance for more than the amount owed on their current mortgage; meaning the homeowner pays off the current mortgage and then has additional cash to use however they want. They maximum loan amount for an FHA Cash Out Refinance is 85% of the homes current appraised value.

What are the guidelines for an FHA Refinance Loan?
If the borrower wishes to take cash out of the property, then the maximum FHA Home Loan Refinance amount is 85% of the current appraised value. If the borrower does not take cash out then the maximum financing will be 97.75% of the appraised value of the home or the amount you are refinancing plus closing costs, whichever is lower.

Why should I consider refinancing into a FHA-insured mortgage?
FHA Refinance Loans do not come with prepayment penalties, have no teaser rates nor balloon payments. They are offered at market rate with terms up to 30 years and are fully amortized, meaning that you pay towards principal and interest every month.

What if I have a prepayment penalty and other refinancing costs and there isn’t enough equity in my home to refinance?
If you do not have sufficient equity in your home to add your prepayment penalty and/or other refinancing costs into your new FHA Mortgage Loan Refinance, then you should ask your lender to consider a second mortgage to pay the difference or a short payoff on your existing loan. Offering either of these options is at the discretion of the lender.

Does it matter that the value of my home is now less than what I still owe?
The mortgage lender considering the refinance will have to be willing to accept a short payoff on the existing loan OR to hold a second mortgage to make up the difference needed to pay off the existing mortgage and the home’s value.