A cash-out 30-year refinance is a mortgage refinancing option where you replace your existing mortgage with a new 30-year loan for more than you currently owe on your house. The difference goes to you in cash and can be used for purposes such as home improvements, debt consolidation, or other financial needs. This option allows you to tap into your home equity while potentially benefiting from a lower interest rate.

The amount of cash you can get depends on your home's value, your current mortgage balance, and lender requirements. Typically, you can borrow up to 80% of your home's value, minus what you still owe on your mortgage. For example:

• If your home is worth $400,000
• And you owe $200,000 on your current mortgage
• You could potentially borrow up to $320,000 (80% of $400,000)
• After paying off your existing $200,000 mortgage, you could receive up to $120,000 in cash

Remember, this is a maximum amount and actual cash received will be less due to closing costs and other factors. Always consult with a mortgage professional for a precise calculation based on your specific situation.

The costs of a cash-out refinance typically include:

• Closing costs: Usually range between 2% and 6% of the loan amount
• Mortgage origination fee: Often around 1% of the financed amount
• Other fees: May include appraisal, title search, title insurance, credit check, recording fee, and notary fee

These costs can be paid in three ways:

1. Financed as part of the new mortgage
2. Paid in cash at closing
3. Covered by accepting a higher interest rate

It's important to factor in these costs when deciding if a cash-out refinance is the right choice for you.

Mortgage rates fluctuate based on various economic factors. Here's a general overview:

• Early 2000s: Rates were between 6% and 8%
• 2007-2010: Rates dropped to around 5%
• 2011-2020: Average rates were between 3% and 5%
• 2020-2021: Rates dropped further due to COVID-19
• 2022: Rates increased to around 6% and beyond

At Total Mortgage, we update our 30-year cash-out mortgage rates twice daily to provide you with the most current information. To get the most accurate and up-to-date rate information, speak with one of our mortgage experts or check our website for real-time rates.

A cash-out 30-year refinance might be right for you if:

• You have significant equity in your home
• You need access to a large sum of money for a major expense or investment
• Current interest rates are lower than your existing mortgage rate
• You plan to stay in your home for a long time
• You can afford potentially higher monthly payments

However, it's important to consider the costs involved, including closing costs and potentially higher total interest paid over the life of the loan. You should also have a clear plan for using the cash you receive. If you're unsure, it's always best to consult with a financial advisor or mortgage professional.