With the recent spike in home values, you may have experienced a sudden dramatic increase in home equity. Due to the lower interest rates and increased equity, cash-out refinancing is becoming increasingly popular. Even with the popularity of cash-out refinancing in Florida, many folks are unaware of the ins and outs of this financial strategy. Let’s examine what cash-out refinancing is and how you may be able to take advantage of it. Like any other refinance loan, you pay off your current home loan or mortgage with a new mortgage with different terms. The key to the cash-out refinance loan in Florida is that the new loan will have a higher value than what you previously owed on your mortgage. The difference between the old loan’s remaining balance and the new loan’s value can then be taken out as cash for whatever you need. To put this in perspective, you are merely borrowing money against the equity in your home. Usually, you can borrow up to 80% of your home’s value. For example, let’s say you owe $50,000 on a house valued at $100,000. You could do a cash-out refinance loan for a total of $80,000. You would pay off your old loan of $50,000 and then have $30,000 in cash (minus the closing costs) to make improvements, take a vacation, or do whatever you wish. You continue to pay one mortgage payment, perhaps even for the same or less monthly payment, with a new influx of cash and perhaps a better interest rate. Receive More Info About Cash-Out Refinance Loans Obviously, the more you can cash out, the more equity you have in your property. Since in most places, including Florida, you are only allowed to take out a cash-out refinance loan for 80% of the value of your home, you need a minimum of 20% equity in your property before you can be considered for a cash-out refinance loan in Florida. This insurance ensures that a lender can get the total value back if you default. This additional payment is rolled into your monthly payment and continues until the loan-to-value gets below 80%. This is valid for both conventional and cash-out refinance. One benefit is that with the lower interest rates, you may be able to reduce your interest rate on your mortgage payments. You should make a thorough comparison with several lenders to ensure you get the best rate possible. You can also change your loan type from an adjustable-rate mortgage to a fixed-rate mortgage, or vice versa. However, it’s usually advantageous to lock in the lower rate rather than changing to or sticking with an adjustable-rate mortgage. You may be wondering what some good use cases for your new cash flow are. One of the most common and fiscally wise things you can do is use the funds to improve your property. Alternatively, another fiscally sound idea is to use that money as a down payment for another investment of some kind, such as another property for use as a vacation home or income-generating property. Some other possible ways to use the funds include the following: While you can use the funds any way you want, you should make sure it’s either worth the additional cost or makes money for you. There’s no question that a cash-out refinance loan in Florida is an excellent way to get your hands on some cash in a relatively short amount of time. However, that doesn’t mean it’s right for everyone. There are better solutions to most situations than taking a cash out to refinance a loan in Florida. The first thing you want to determine is whether you have the discipline to make smart financial decisions and repay the outstanding debt properly and not waste it, make poor decisions, or take on more than you can handle. Make sure your decision keeps you within your means, not above them, so you’re not eternally stuck in debt. Refinancing might still be a good option, in which case you should do a rate or term refinance, which gets you a better rate or more favorable term for your mortgage. This can save you substantial money over time. Either way, you should consult a professional to discuss the pros and cons of a cash-out refinance loan in Florida to ensure it’s the right choice for you. It can be a complicated process, even if you’re confident that a cash-out refinance loan is something you wish to do. Therefore, working with someone with experience and expertise in the area is essential. The professionals at Titan Funding in Florida have the necessary knowledge and experience to work you through the cash-out refinance loan process. If you’re interested in learning more about getting a cash-out refinance loan in Florida or want to know more about any of our other financing options, reach out to our team at Titan Funding. You can reach us at 855-928-0737 or complete our secure online form to get started. We’re available to take your call or meet with you in person Monday through Friday from 9 a.m. to 6 p.m.Cash-Out Refinance Loans Explained
Eligibility for Cash-Out Refinance Loans in Florida
There is one exception to the 80% rule, which would allow you to borrow more than 80% of the value of your home. Typically, this is for the original mortgage, but you may be able to find a lender who will do this for the cash-out refinance as well. To get above the 80%, you would need to include private mortgage insurance as part of the loan package.Uses and Benefits of Cash-Out Refinance Loans in Florida
Should You Take Out a Cash-Out Refinance Loan in Florida?
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Frequently Asked Questions - FAQ
TL;DR: Cash‑out refinance loans allow homeowners to replace their existing mortgage with a new one of higher value and withdraw up to about 80 % of the home’s value in cash. Titan Funding’s experts assist borrowers in understanding eligibility, optimal uses and whether refinancing is the right choice.
What is private money lending?
Private money lending refers to financing provided by individuals or non‑bank entities for real‑estate investments. These loans are asset‑based rather than credit‑based and usually have short terms with higher interest rates compared with traditional bank loans.
How do I qualify for a real‑estate investment loan through Titan Funding?
Titan Funding evaluates the property’s value and the loan‑to‑value ratio rather than focusing on credit scores. Maintaining an LTV around 60 % and providing a clear plan for the investment increases your chances of approval.
What documents are needed for hard‑money loans?
Documentation typically includes proof of property ownership or purchase contracts, appraisals, and, for construction loans, detailed plans and budgets. Because underwriting is asset‑based, credit documentation is less critical than in conventional lending.
How quickly can I get funded for a property in Florida?
Titan Funding’s underwriting process usually takes about 48 hours, and approved borrowers can receive funds within four days for hard‑money, rental or bridge loans. Some commercial bridge loans provide funding in as little as 10 days.
Does Titan Funding lend to foreign nationals?
Yes. Titan Funding offers hard‑money programs for non‑U.S. citizens seeking to buy or refinance property in South Florida, using asset‑based underwriting to bypass conventional loan barriers.
What types of loans does Titan Funding offer?
The company provides various short‑ and long‑term real‑estate loans, including hard‑money and bridge loans, residential and commercial bridge loans, multifamily financing, fix‑and‑flip loans, rental property loans, ground‑up construction loans, bridge‑to‑permanent loans and cash‑out refinance options.
How does LTV work in real‑estate loans?
Loan‑to‑value ratio is calculated by dividing the loan amount by the appraised value of the property. Lenders, including Titan Funding, set maximum LTV thresholds (often around 60 % for hard‑money loans) to manage risk.
Which states does Titan Funding serve?
Titan Funding primarily serves Florida but may authorize loans in other states on a case‑by‑case basis. Applicants can discuss their specific property and location with the company’s professionals.
How do I calculate return on investment (ROI) for fix‑and‑flip projects?
ROI is determined by subtracting total costs (purchase price, renovation expenses, loan interest and fees) from the final sale price, then dividing the result by total costs. Titan Funding’s guide on calculating fix‑and‑flip ROI emphasizes factoring in loan terms and interest to evaluate profitability.
What are the risks of hard‑money loans?
Hard‑money loans carry higher interest rates (often 10 %–15 %) and points compared with traditional financing. They are short term, so borrowers need a clear exit strategy and must account for appraisal and origination fees in their budgets.
What is a cash‑out refinance loan?
In a cash‑out refinance, borrowers take out a new mortgage with a higher principal than the existing loan. The difference between the old loan balance and the new loan amount is given to the borrower as cash.
How much equity do you need to qualify?
Lenders typically allow borrowers to refinance up to 80 % of the home’s value. This means homeowners generally need at least 20 % equity to be considered, although some exceptions exist if private mortgage insurance is included.
What can cash‑out funds be used for?
Borrowers often use the proceeds to improve their property, purchase additional investments, pay off high‑interest debt, fund retirement or cover medical bills. It’s important to ensure that using the funds provides financial benefit or return.
Are cash‑out refinance loans right for everyone?
No; borrowers should consider their ability to manage additional debt and whether other refinancing options, such as rate‑and‑term refinances, better suit their needs. Consulting professionals helps determine if cash‑out refinancing aligns with one’s financial goals.
What are potential benefits of cash‑out refinancing?
With lower interest rates, borrowers may reduce monthly payments, switch from adjustable‑ to fixed‑rate mortgages, or lock in favorable terms. Accessing cash through equity can also fund property improvements or other investments.
How does Titan Funding assist with cash‑out refinance loans?
Titan Funding’s professionals guide borrowers through the refinancing process and help evaluate whether a cash‑out refinance is appropriate. They can provide additional loan options and ensure borrowers understand the benefits and risks.