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Mortgage Glossary

Cash-Out Refinance

Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker

A cash-out refinance replaces your mortgage with a larger loan and gives you the difference in cash, tapping your home equity.

What Cash-Out Refinance means

You can use the proceeds for renovations, debt payoff, or investment. Most Florida lenders require you to keep at least 20% equity after the cash-out. The new loan resets your rate and term.

Florida example

A homeowner with a $250,000 balance on a $450,000 home refinances into a $360,000 loan, pocketing about $110,000 while retaining 20% equity. Rates on cash-out refinances run slightly higher than rate-and-term refinances.

Turning equity into cash

A cash-out refinance replaces your mortgage with a larger one and hands you the difference in cash. You tap your home equity for renovations, debt payoff, or an investment.

If you owe $200,000 on a $350,000 home, you might refinance to $280,000 and take $80,000 in cash.

The limits and costs

Most lenders let you cash out up to 80% of your home's value, keeping 20% equity in place. You pay closing costs and start a new loan at today's rates.

We run the full math before you decide. Reach out and we will show how much you can pull and what it costs.

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