Broker vs. Bank / Credit / Debts / Rates & Terms / Refinance / Rental Properties

Looking for a Mortgage Rule Loophole? We have one!

The new mortgage rule announced July 9th limiting refinance maximums to 80% of the home value has restricted some homeowners. The good news is there is still an alternative to get you 85% of your home value to help with debts, mortgage payment reduction or whatever else you could use your extra funds for.

The secret is the cash-back mortgage. With a couple of lenders allowing us to use a cash-back product for a refinance, we are able to get you up to 5.5% cash-back on top of your mortgage. Take a look at the example below to see how a cash-back refinance product can get you the extra funds you need.

Home Value: $300,000

Max Refinance Limit 80%: $240,000 (maximum mortgage amount)

5.5% Cash Back of mortgage amount: $13,200

Total Cash out of Refinance: $253,200 (approx. 84.4% of home value)

Monthly payment: $1316*

The upside is you get more cash out from your refinance and you can also take advantage of a 30 year amortization as the mortgage is un-insured making your payments a bit lower. The fine print of the cash-back product is it comes with a higher interest rate, but it’s only about 2% higher than best rates and mortgage payments are still manageable.

Keep in mind; there are some minimum credit and income requirements for cash-back products and cash-back doesn’t just apply to refinancing; it is also available for purchases. Don’t hesitate to contact The MortgageGirls to see if you qualify for a cash-back mortgage and how you can take full advantage of it.



*monthly payment as of July 19th, based on 5-year term with benchmark rate of 5.24% and a 30 year amortization.


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