Posted by Tom-FL on November 07, 2004 at 23:09:12:
The $3900 (6% of 65,000) closing costs come out of the $15,000 cash out. Any more bunny questions?
Next time, do the math before posting.
What does “cash-out refinancing” mean ? - Posted by MaggieBlum
Posted by MaggieBlum on November 07, 2004 at 04:40:57:
Hello investors please pardon my MAJOR ignorance,
but can someone explain to me what “CASH-OUT REFINANCING” means. It would help if you gave an example. Thanks.
Re: What does - Posted by Tom-FL
Posted by Tom-FL on November 07, 2004 at 09:38:56:
Sure. You have a house and your mortgage balance is $50,000. You want a lower interest rate so you refinance. You have plenty of equity so you refinance for $65,000. $50,000 pays off the original mortage and you “cash out” $15,000.
Re: What does - Posted by JA
Posted by JA on November 07, 2004 at 15:49:14:
and the fairy tooth bunny pays for the closing costs?
count on 3%-6% for closing costs, depending on the lender, plus any liens… then you have the real “cash-out”.