Ain't Nobody (Doing a Cash-Out Refi Right Now)
By Rob Spinosa, Mortgage Loan Originator, Marin County
(US Bank)
Ain't Nobody (Doing a Cash-Out Refi Right Now) If you believe the statistics, 90% of homeowners with a mortgage will have a home loan rate somewhere under 5% these days. And it's a safe bet to assume that a high percentage of those may be under 4% or even 3%. If you're one of these fortunate borrowers, the thought of refinancing your historically-priced mortgage to get cash out --- a.k.a., a "cash out refinance" --- is a non-starter. To quote Chaka Khan, "ain't nobody" is doing a cash-out refi unless they ain't got no better option. But often there can be a better option. The most common one is a home equity line of credit, or HELOC. But these loan types are adjustable rate mortgages (ARMs) that track Prime Rate, which, here in the fall of 2023, is currently at 8.5%. However, th...
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