New Mexico Cash Out Jumbo Loans
When the rate market changes and a homeowner has the opportunity to refinance their mortgage at a lower rate, one way to refinance is with a cash-out loan. Cash-Out loans allow New Mexico homeowners to refinance their mortgages at a lower rate AND to take cash out of the home’s built up equity. A Cash-Out loan is a great option for New Mexico residents who want to take advantage of a low-interest rate market while tapping into stored equity to pay off higher interest debt, reinvest in home improvements, or finance a child’s education.
A Cash-Out loan works by refinancing your mortgage at a higher amount and lower rate than you currently have and keeping the difference. For example, let’s say you have an $800,000 mortgage, of which you still owe $500,000, and the market is currently offering lower interest rates than what you locked-in. You want to capture a lower rate AND get $15,000 to send to Albuquerque for your child’s University of New Mexico tuition. Using a Cash-Out Jumbo loan, you can refinance the mortgage for $515,000 to get a better rate on the $500,000 you owe on the house while pocketing the $15,000 for tuition expenses.
Jumbo Rates New Mexico offers several Cash-Out loan options for ‘Jumbo homeowners’, or individuals with mortgages of more than the conventional limit set by Fannie Mae and Freddie Mac. This limit is $510,400 for most U.S. resident, but, due to the higher average home prices of some New Mexico regions.
The FHA loan-to-value (LTV) requirements limit New Mexico residents to cashing out on up to 85% of their stored equity using a Jumbo Cash-Out loan. Additionally, although Cash-Out Jumbo loans do require homeowners to pay closing costs, there is the option to roll these costs into the new mortgage to minimize the out-of-pocket expenses associated with refinancing.
To get a quote for a New Mexico Cash-Out Jumbo loan or cash out conventional loan, either fixed or an adjustable-rate-mortgage (ARM), please click “Get Started” or call us at 877-416-3471. We would love the opportunity to help you save money and choose the best loan option for your unique circumstances.