Equity review
Recent comparable sales to estimate value before we pay for an appraisal.
Already own a home
Cash out refinance
Use built up equity for a remodel, tuition or the next property
The short version
Bay Area equity is often the largest asset a family holds. A cash out refinance converts part of it into cash at mortgage rates, which is nearly always cheaper than the alternatives. The question is whether replacing a low rate first mortgage is worth it, or whether a second position loan makes more sense.
Mortgage rates are usually far below personal loan or card rates
One payment instead of several
Funds can be used for a remodel, tuition, a business or a down payment elsewhere
Fixed rate means the payment does not move with the market
What you get on this program
The work that sits behind the rate quote.
Blended rate analysis
If you hold a 3% first mortgage, I will compare cash out against a second so you keep the low rate where it makes sense.
ADU and remodel planning
Accessory units are common in San Jose. We look at timing the draw against the permit schedule.
Debt payoff modelling
Which balances to pay off, and which to leave, based on rate and on what it does to your credit profile.
Tax note
Interest deductibility depends on how the money is used. I will flag the question and send you to your CPA.
How this one runs
The same sequence every time, adapted to the program.
Structure
Cash out first mortgage or a second position loan, compared on total monthly cost.
Application
Documents, lock and appraisal.
Funding
Signing, three day rescission on a primary residence, then funds wired.
What moves your pricing
Four levers underwriting looks at on this program, and what each one is worth.
| Factor | What it means for you |
|---|---|
| Loan to value | Most cash out programs stop at 80%, with better pricing at 70% and below. |
| Existing rate | Giving up a 3% first mortgage is expensive. Sometimes a second is the better answer. |
| Seasoning | Generally six to twelve months of ownership before cash out is allowed. |
| Use of funds | Some programs ask what the money is for. Remodels and debt payoff are straightforward. |
Programs people compare this with
Rate and term refinance
Lower the payment, shorten the term, or drop mortgage insurance
- No cash out
- 15, 20 and 30 year terms
- Mortgage insurance removal reviews
6.000%sample rate, 6.147% APR
Self employed and bank statement
Twelve or twenty four months of deposits instead of tax returns
- 12 or 24 month statements
- Personal or business accounts
- No tax returns required
7.125%sample rate, 7.402% APR
Jumbo home loans
For Santa Clara County prices above the conforming cap
- Loans to $3,000,000
- 10% down available to $1.5M
- Fixed and 7/6 ARM
6.250%sample rate, 6.341% APR
Cash out refinance: the questions I get
Straight answers, including the parts other lenders leave out.
Still stuck on something
Call (408) 555-0124 or book a 20 minute slot. No documents needed for the first conversation.
Up to 80% of value minus the existing loan on most programs. On a $2,000,000 home with a $900,000 loan that is roughly $700,000 as a sample figure.
Sometimes, particularly if your first mortgage rate is very low or you want to draw in stages. I will quote both structures rather than steer you.
Yes, usually a quarter to a half point higher in rate as a sample comparison, because the risk profile is different.
Run your own numbers with me
Twenty minutes on cash out refinance and whether it is really the right tool for your situation.
Sample figures across this site are illustrations, not quotes. Equal Housing Opportunity.