The Cash-In Refinance

The Cash-In Refinance

You've heard of the cash-out refinance. That's when the new mortgage is for a bigger amount than the old loan. The homeowner receives a check for the difference at closing. In a cash-in refinance, the refinanced mortgage is for a smaller amount than the old loan. The homeowner takes a check to the closing.

Why would you do this you ask? There are four major reasons why this is a logical choice for borrowers:

1. Getting the best mortgage rate – Also if you are underwater on your mortgage, you may not qualify for the refinance. Bringing money to the table can change that.
2. Eliminating PMI (Private Mortgage Insurance)
3. Avoiding a jumbo loan (loans generally between $417,000 and $729,750)
4. Shortening your loan term with reasonable monthly payments

These reasons and several more are making the cash-in refinance much more attractive to borrowers who are attempting to soften the blow to their monthly cash flow.

Would you like to find out if this is your best option? Want to know how much you need to bring and what fantastic changes that means for you? Give one of our refinance specialists a call to find out today!