cash out is considered when i am cashing out 2% or 2000 whichever is less ??

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cash out is considered when I am cashing cash 2% of my loan amount or 2000 whichever is less


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Actually, the amount allowed on a conventional rate/term refinance is the LESSER of 2% of the loan size or $2000. On a $100,000 loan, the max cash back at closing would be $1000. Different standards apply to FHA and VA streamlines, and HARP refinances.

Answered 12 months ago
Ted Rood
1304 6

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A loan is considered ‘cash out’ if you walk away with $2000 or more. If under $2K, it is just considered a rate and term refinance. Your closing costs and pre-paids (escrows for taxes, ins. and per diem int.) can be included in the new loan and are not part of the cash out formula, however if including them you do need to keep aware of your loan to value based on the current appraised value.

Answered 12 months ago

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