Everything You Need To Know About Quicken Loans Cash-Out Refinances

A cash-out refinance with Quicken Loans allows homeowners to tap into their home equity and take cash out of their property This can be an excellent option for those looking to fund home renovations, pay off high-interest debt, or access cash for other needs Here is a comprehensive guide to Quicken Loans cash-out refinancing.

What is a Cash-Out Refinance?

A cash-out refinance involves taking out a new mortgage loan that is larger than your current mortgage balance. The proceeds from the new loan pay off your existing mortgage, and you get the difference in cash.

For example if your current mortgage is $200000 and you take out a new loan for $250,000, after paying off the old loan you would get $50,000 cash out. This allows you to tap into your home’s equity while keeping just one mortgage payment.

Quicken Loans Cash-Out Refinance Options

Quicken Loans offers several cash-out refinance programs to meet different needs

• Conventional cash-out refinance: Up to 80% loan-to-value for loan amounts up to $647,200. Best rates and terms.

• Jumbo cash-out refinance: For loan amounts above $647,200. Higher requirements but allows you to tap more equity.

• FHA cash-out refinance: More flexible requirements, including qualifying with a credit score as low as 580. Can borrow up to 85% of appraised value.

• VA cash-out refinance: For veterans and service members. 100% financing available and no mortgage insurance.

• USDA cash-out refinance: For properties in rural areas. 100% financing available with no down payment.

Quicken Loans has highly competitive rates across all these loan programs.

Cash-Out Refinance Requirements

To qualify for a Quicken Loans cash-out refinance, you’ll need:

• Equity in your home: Most programs require 15-20% equity. The more equity you have, the more cash you can take out.

• Good credit: Minimum credit scores vary by program but generally you’ll need at least a 620 FICO score. Lower can qualify for FHA.

• Manageable debts: Your total monthly debt payments, including the new mortgage, should be less than 50% of your gross monthly income.

• Sufficient income: You must have enough income to afford the new, larger mortgage payment.

As long as you meet these requirements, a Quicken Loans cash-out refinance allows you to access your equity.

Cash-Out Refinance Rates

Cash-out refinance rates are generally higher than rates for a no-cash-out refinance, but lower than HELOC rates. Here are average cash-out refinance rates as of March 2023:

• Conventional: 6.5% – 7%
• FHA: 5.5% – 6.25%
• VA: 5.375% – 6.125%
• USDA: 5.75% – 6.25%

Rates vary daily based on market conditions. Connect with a Quicken Loans loan officer to get real-time personalized quotes.

How Much Cash Can You Take Out?

The amount of cash you can take out depends on how much equity you have and the loan-to-value limits of the particular program. For example:

• With a conventional loan you can generally take out up to 80% of your home’s value.
• FHA allows you to tap 85% of the value.
• VA has no LTV limit so you may be able to take all your equity.

Run the numbers to see how much cash you may qualify for.

Cash-Out Refinance Closing Costs

As with any refinance, you’ll have to pay closing costs for a Quicken Loans cash-out refinance. These typically range from 2-5% of the total loan amount.

Closing costs include:

• Origination fees
• Appraisal fees
• Title fees
• Recording fees
• More

You can pay closing costs out of pocket or roll them into the new loan amount.

Cash-Out Refinance Process

The process for getting a Quicken Loans cash-out refinance is straightforward:

1. Get prequalified: Apply online or speak to a loan officer to get prequalified and receive loan estimates.

2. Choose loan terms: Review the loan estimates and choose the loan amount, rate, term length, etc. that work best for you.

3. Submit full application: Provide documents like pay stubs, bank statements, tax returns, etc. to proceed with underwriting.

4. Home appraisal: Quicken Loans will order an appraisal to verify the home’s value.

5. Underwriting approval: Underwriters review your full application and issue final loan approval.

6. Closing: Review final documents, sign, and close! The cash is then wired to your account.

The entire process usually takes 30-45 days from application to funding.

Pros of a Cash-Out Refinance

• Access equity without selling your home
• Pay off higher interest debt
• Consolidate bills into one payment
• Fund home improvements
• Pay for education, vacations, or other expenses
• Leverage low interest rates before they rise

Cons of a Cash-Out Refinance

• Closing costs
• Potentially higher mortgage payment
• Higher interest rates than no-cash-out refi
• Lower home equity
• Risk of foreclosure if you can’t make payments

Alternatives to Cash-Out Refinance

Some other options for accessing home equity include:

• Home Equity Loan (HEL): Second fixed-rate loan with set repayment terms.

• Home Equity Line of Credit (HELOC): Revolving line of credit with variable interest rates.

• Home Improvement Loans: Specialty loans just for renovations.

• Reverse Mortgage: Allows seniors to access equity without repayment.

Each option has pros and cons to weigh based on your specific needs and financial situation. Many homeowners find cash-out refinancing to be simplest and most affordable.

Is a Quicken Loans Cash-Out Refinance Right for You?

If you have sufficient equity, good credit, and a need for cash, a Quicken Loans cash-out refinance can be a great solution. Connect with one of their loan officers to go over your home value, equity, income, credit, and monthly expenses. They can help you determine how much cash you may qualify for, what programs make sense, and the smartest way to tap your home equity.

With competitive rates and a streamlined process, a cash-out refi through Quicken Loans is an excellent way for many homeowners to unlock their equity and put it to use. Evaluate your options and see if it’s the right move for your financial situation.