Cash in Refinance


Cash in Refinance

Cash in Refinance

Cash in refinance is considered to be when borrowers pay down their existing mortgage to under a specific loan-to-value ratio, so that the borrower can qualify for a mortgage refinance. Cash in refinance requires you to have a big sum of money that you can apply toward the reduction of your current mortgage balance. Cash in refinance has become popular because currently, it is possible for borrowers to earn an attractive rate of return on the money that they invest into the pay down of their mortgage balance. Cash in refinance will usually allow the borrower to refinance their current mortgage at the current market rates further allowing them to save money on their mortgage payment.


There could be many reasons why borrowers would want to complete a cash-in refinance. One reason could be a borrower wants to lower their mortgage interest rate to the current rate that is going on in the market. A borrower could qualify for the new interest rate as long as their loan to value ratio is below 80 percent. Another reason for a cash-in refinance is to avoid private mortgage insurance. If your loan to value ratio is above 80 percent, you will usually have to pay for private mortgage insurance, but you could avoid paying private mortgage insurance by putting enough money in so that your loan to value ratio falls below 80 percent. A last reason for wanting to complete a cash-in refinance is the borrower wants to pay off their mortgage faster. Some borrowers want to put cash in so that they can afford the payments when they refinance to a 30 year loan into a 15 or 10 year mortgage loan.