The maximum LTV ratio for a cash-out refinance is 80%. Depending on your credit and income, you might not be able to qualify for a 80% LTV. If you have bad credit, the maximum allowed LTV by your lender might be lower.
For example, let’s say that your home is valued at $500,000, and you currently have a $300,000 mortgage. This means that your current LTV is 60% ($300,000 divided by $500,000). With a maximum LTV of 80%, you can borrow up to an additional 20% of your home’s value, or $100,000. You can refinance your mortgage for $400,000, pay off your existing mortgage of $300,000, and withdraw $100,000 in cash.
To calculate how much you can borrow, use our mortgage refinance calculator to see how much home equity you can access and how a change in mortgage rates can affect your mortgage payments. „What Should a Cash-Out Refinance Be Used For?“ weiterlesen