How a cash-out refinance works
You take a new mortgage for more than you owe today. The new loan pays off your current mortgage, and you receive the difference in cash, minus any costs. You end up with one loan, one rate and one monthly payment.
If you like your current rate, a home equity loan may fit better. It keeps your first mortgage and adds a second loan.
Step 1: Get a quote and decide how much to take
Start with your home's estimated value, what you owe, and how much cash you need. Your quote shows your estimated rate, payment and cash available. Borrow what you need for a clear purpose, not the most you can get.
Step 2: Apply and lock your rate
Your application covers your income, assets, debts and the property. When you go ahead with a CapCenter loan, you pay an upfront Good Faith Deposit, which is refunded in full when your loan closes. Locking your rate protects it while your loan is processed.
Step 3: Send your documents
Your loan consultant will send a list. It usually includes:
- Recent pay stubs and W-2s, or tax returns if you're self-employed
- Bank and asset statements
- Your current mortgage statement
- Your homeowners insurance information
- Statements for any debts you want paid off at closing
Step 4: Value and underwriting
The lender confirms your home's value. That may be a full appraisal or another method, depending on the loan. The value matters because it sets how much cash is available.
Next, an underwriter reviews your file. They may ask for a few more items. Quick replies keep things moving.
Step 5: Closing Disclosure and closing
You'll receive your Closing Disclosure at least three business days before closing. It shows your final terms, costs and cash to you. Compare it with your Loan Estimate, and ask about anything that changed. Then you sign your documents with the settlement agent.
Step 6: The 3-day right to cancel, then funding
When you refinance your primary home, federal law gives you a right to cancel, called the right of rescission. It lasts until midnight of the third business day after closing. Your loan funds after that.
Once it funds, your old mortgage is paid off. Any debts you chose to pay at closing are paid directly. The rest is sent to you, usually by wire or check.
What it costs
With CapCenter's ZERO Closing Costs, CapCenter pays for or waives the closing costs typically required to process the loan (restrictions apply). You still fund prepaid interest and your escrow account for taxes and insurance. Those aren't lender fees, and your old escrow balance is usually refunded by your old servicer after payoff.
