What is the difference between a rate and term refinance and FHA cash-out refinance?

Fast Free Consultation!

Loan Amount

Type of Loan

Rate Your Credit

Answer
A cash-out refinance allows individuals to remove equity from their home and receive cash back at loan closing on the transaction. A rate and term refinance allows individuals to refinance their current mortgage and obtain either a lower interest rate and/or change in the term. A rate and term refinance does not allow for removal of equity from the home. However, because closing and other transaction costs are estimated on the Good Faith Estimate, and are subject to change based on actual fees at loan closing, individuals may receive no more than $500 cash back based on the re-estimation of transaction costs.
Handbook 4155.1: 3.A.1, 3.B.1

FLORIDA MORTGAGE :: FHA MORTGAGE FLORIDA :: FHA REFINANCE FLORIDA

ALL FLORIDA MORTGAGE PROGRAMS AND GUIDELINES SUBJECT TO CHANGE WITHOUT NOTICE

FREE CONSULDATION :: GET PRE APPROVED NOW

Serving every city and town in Florida including: