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HOME > Money > Cash out refinancing

Cash Out Refinancing

The last few years have seen the lowest rates in decades not to mention a continued surge in refinancing like no other decade. Current 30 year fixed rates remain well below 6.00%. With 15 year fixed rates below 5%. Consumers are seeing financial advantage that could save them thousands of dollars over the life of the home loan. What should you do?

A year to year comparison of average mortgage rates reveal the median rate for interest charge savings is 7% or under. These factors indicate that the long anticipated savings for home owners seeking refinancing has arrived. The rates should remain low through the fall/winter months, though fluctuating several basis points. This should prove ideal for home bound shoppers seeking to find the best bargains and low interest rates that will significantly reduce interest charges and possibly save thousands of dollars over the life of the loan. Among the more sought after loan programs at this time is what is called Cash Out Refinancing.

What is cash-out refinancing? Cash-out refinancing allows you to refinance your mortgage for more than you owe and then pocket the difference in the form of cash. This can be ideal for funding college education, buying a car, investing or pursuing a business venture. You use it as you need it.

How does it work? Here's an example: You currently owe $90,000 on a home that's valued at $160,000. You are seeking to lower the interest rate. You also want $20,000 in pocket-able cash. You refinance the mortgage for $110,000. This leaves you with a lower rate on the balance you owe on the house, and you pocket $20,000 cash to use as you wish.

To begin the process take advantage of low rate loan quotes from various lenders competing in highly active online lending marketplaces like Fill out a quick quote form and take your time comparing rates quoted from various lenders. In time you're bound to get an offer you cannot refuse. Once a good offer is made make sure to ask for a good faith estimate.

Compare Lowest Cash Out Refinance Rates at

For more information on what consumers in the financial industry are doing go to Mortgage Loan Search

Author: Mark Askew
Editor for the Mortgage Loan Search Network, the MLS Rate Watch Program Newsletter and a host of e-business periodicals 2005. All Rights Reserved.