Mortgage-Refinance Loan Can Put Cash in Your Pocket

Do you need cash? Here's a mortgage for you. If you are not in a good position to take an equity line of credit on your home, because you have not built enough equity or a poor credit situation is making bankers steer clear of you, altogether, there is another option -- the cashout refinance. This loan does what the equity line does in most cases, but it is not an interest-only loan, and it has conventional mortgage terms. The advantage for people without enough equity and less than perfect credit is you can get at what little equity you do have by refinancing to a new conventional mortgage, taking cash out at the close of the loan.

Here's how it works.

Let's assume you have a home valued at $110,000. You owe $86,000, and you would like to get $8,000 in cash to pay off two small credit cards with high interest and to do some minor rehab work on you home. With your B credit rating, banks won't give you 100 percent of your equity or even 95 percent, so an equity line won't work.

However, you will qualify for a 90 percent cashout refinance loan. In order to keep your costs down, you combine this strategy with another one, an adjustable rate mortgage, and this helps you maintain a low monthly payment.

You need about $4,000 to close the loan (remember it's a conventional mortgage with all the closing costs -- equity loans can be closed with no costs at all). The closing costs, though, will be financed into your new loan, so you don't have to come out of pocket with any money.

So, you get a new mortgage for $99,000, which pays off your old fixed rate mortgage loan, covers the closing costs and, best of all, leaves you with $9,000 in cash -- $1,000 more than you actually need.

The ARM rate is probably one percent less than your old fixed rate, so your payment will stay close to what it was. Plus, you eliminate monthly credit debt, so you have created even more cash! This is just an overview of a very powerful loan.

Mark Barnes is the author of the new novel, The League, the first work of fiction, based on fantasy football. He is also an investment real estate and home loan finance expert. Learn more about his suspense thriller at http://www.sportsnovels.com Get his free mortgage finance course at http://www.winningthemortgagegame.com

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table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.kippreport.com/kipp/arif-alharmi/arif-alharmi/cid=0ei=JtzqSJxvqOTqA7SCsf4Iusg=AFQjCNFMLREIY83f0JA5L1TY1UiR9e6TqQMarwan Bin Ghalita/abrfont size=-1font color=#6f6f6fKipp Report,nbsp;United Arab Emiratesnbsp;-/font nobr5 hours ago/nobr/fontbrfont size=-1Last year, Amlak announced plans to become a founding shareholder of the Egyptian bMortgage Refinance/b Company (EMRC) through Amlak Egypt. b.../b/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.transworldnews.com/NewsStory.aspx%3Fid%3D63845%26cat%3D8cid=0ei=JtzqSJxvqOTqA7SCsf4Iusg=AFQjCNEmArhyWKHgFepQjpvUKjkwUI8CsAHow You May Qualify For a “Short Pay” bRefinance/b/abrfont size=-1font color=#6f6f6fTransWorldNews (press release),nbsp;GAnbsp;-/font nobr9 hours ago/nobr/fontbrfont size=-1If you are upside down and have no lates on your bmortgage/b, you may qualify for what is called a “Short Pay” brefinance/b. Basically, what the Government is b.../b/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.marketwatch.com/news/story/homesaverprogramorg-loan-modification-saves-desperate/story.aspx%3Fguid%3D%257BFD213C8F-9774-420A-8AAF-E433C3CA5D88%257D%26dist%3Dhpprcid=1254820845ei=JtzqSJxvqOTqA7SCsf4Iusg=AFQjCNEvuR21VDwEafkl11_vmDXhEretTwhomesaverprogram.org Loan Modification Saves Desperate Couple from b.../b/abrfont size=-1font color=#6f6f6fMarketWatchnbsp;-/font nobr12 hours ago/nobr/fontbrfont size=-1The mounting medical bills prompted the couple to brefinance/b their $350000 home in Chicago, IL, from a $200000 30-year fix-rate bmortgage/b at a 6.0% interest b.../b/font/div/font/td/tr/table
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mortgage refinance - Google News

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