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Steve: This is SteveCurrington.com in The Steve and Tyler Show Episode number 73 Colorado Springs Mortgage
Recording: Welcome to The Steve and Tyler Show with Steve Currington.com [crosstalk]
Steve: That was my crazy voice Colorado Springs MOrtgage
Tyler: Who negotiated contract for you?
Steve: I wrote it.
Tyler: You’re pretty smart. Well, good for you man.
Recording: They are talking about everything you need to know about mortgages, home loans and more. Nobody knows mortgage like these two. Get ready because here’s Steve and Tyler
Steve: Yo, Tyler. What up?
Tyler: Yo.
Steve: What is the happening? Tulsa mortgage over here buddy. What are you doing?
Tyler: Trying to find where we are.
Steve: We lost the internet. It is early in the morning and the Jinx America in the Clay Clark Studios, Thrive15 Studios. Also by the way, where they record the Thrive Time Radio Show.
You know that? They are recording it here until I am hearing that there is the man cave coming, where they’re going to start the recording The Thrive Time Show. Suppose — as some people say, “Supposedly.”
[laughter]
Recording: This is Steve Currington.com in the Steve And Tyler Show. Go to getkoalolified.com.
Steve: Tulsa mortgage talking about today. What’s a cash-out mortgage or cash-out refinance? Tyler, what is a cash-put refinance?
Tyler: To refinance, we get cash-out.
Steve: Wow, boom Colorado Springs Mortgage.
Tyler: Boom.
Steve: All right, that’s the end of our episode and I hope you enjoyed and have a good day. I am Steve Currington.com and that is the world’s shortest episode that we ve ever done. That was Episode number 73 and it was the shortest one. It lasted a minute and 30 seconds.
Tyler: Yes.
Steve: And the first minute was I was Colorado Springs Mortgage talking about The Thrive Time Show.
[laughter]
So for anybody that missed it, hit it again, Tyler Colorado Springs mortgage
Steve: Here is the deal. Tyler? What’s a cash out refinance?
Tyler: It’s where you refinance your home and you actually get money, you get a check.
Steve: You get cash out?
Tyler: Yes.
Steve: Like the cash is in-
Steve: And you get it out.
Steve: – and then you get it out.
Tyler: Yes.
Steve: The cash is in and you get it out. The cash is in and you get it out. I have cash in my — No, it was in my house.
Tyler: Yes.
Steve: And now it is out.
Tyler: Like literally, they come extracted out of the [inaudible 00:02:31].
Steve: Like it’s in your house.
Tyler: Yes,
Steve: The cash. And now, it is out of your house. That’s what a cash-out refinance is, a cash-out mortgages to put [unintelligible 00:02:44]. A cash-out refinance is the exact same process as a refinance.
Tyler: No, it isn’t.
[laughter]
Steve: We have just set a record for the shortest and easiest Podcast ever. That is right, folks. That’s all you need to know. Here is what you do need to know is it’s not just like a regular refinance because here is why, Tyler.
If I owe $80,000 on my house and my chair is broken I can’t scoot up. There we go. If I owe eighty grand on my house and my house is worth a hundred grand and I want to refinance and get cash out, I cannot, if I’m doing a [unintelligible 00:03:32] loan. I can do FHA to get that five grand but probably wouldn’t be worth it.
Tyler: No.
Steve: Because you’ll pay about half of that just in this FHA so you probably won’t do that. You can’t really always do a cash-out refi because you may not have enough equity in order to be able to access any cash. That’s why it’s not exactly the same as refinance because one interesting thing is, on a VA refinance, you can actually get up to a 100% of the value of your house, where on an FHA or a conventional, you’re limited on conventional 80 and on FHA at 85%, little known fact. They call it an interest rate reduction loan, an IRRL, I-R-R-L.
If you do an IRRL, it does not matter if you get a dollar out, you get cash out. It’ just a cash out refi VA and it is not a bad deal. I mean we just didn’t want them, they’re easy. But that is really the only exception because if you are doing a conventional and you’re doing cash out, your interest rates can be a little higher because you are doing cash out. Your loan value is going to be limited because you’re doing cash out. Where if you are just doing a rate in term and you are just paying off your existing mortgage, you go up to 95% on conventional. In fact, maybe a 97%.
However, I will tell you this. If you are paying off anything other than a purchased money second. Let’s say you have a primary mortgage that you got and let’s say you wanted to build a pool, so you went and got a home equity line of credit. Two years after you bought your house for 20 grand and your house is worth 115, you owe about 105. You want to do a rate and term refinance. You’re going to pay off your existing mortgage of 85,000 and you are going to pay off your second of 20,000. That’s a cash-out refi, right, Tyler Colorado Springs Mortgage
Tyler: Yes.
Steve: Why you say? Because you’re paying off a non-purchased money second mortgage. That’s what they call it. It is a non-purchased money second. That means it’s no different than you’re paying off a credit card or if you’re paying off an auto loan or you’re paying up anything, because you accessed your equity already and now they’re going to call you a cash-out refinance. That is the whole deal.
Now, it’s not exactly the same as a regular refinance for that reason because of LTB, because of [unintelligible 00:06:03] requirements, because of a lot of things. Before you get all, you know fancy-pants and think you’re going to go refi and get a bunch of cash out of your property, you might want to ask the loud koala gets evicted. You might be screaming when you realize you can’t get any cash out.
I like to sit here and look at Tyler if I am quite long enough. Hey, you try to be on a Podcast with me and get in a word edge wise, okay? Tyler just sits there most of the time and just like, “Okay, Steve. Okay, okay, okay, okay, okay. Play the goal thing again, Steve. Okay.” All right. Play the goal thing, the Tyler wake up and you listen to this message.
Recording: Welcome to Steve and Tyler Show. [crosstalk] from the Koala Studio in Tulsa, Oklahoma, you are listening to the Steve and Tyler Show.
Tyler: There’s a lot going on in there.
Steve: This is what you have to deal with if you do a Podcast with Currington. Okay, look. I’m just trying to fill some time, okay, because I can’t say anything else about it, a cash-out refi. What am I missing?
Tyler: It is about it. I do not know.
Steve: See? Tyler has nothing, either COlorado springs mortgage
Tyler: [laughs] I got nothing.
Steve: He got nothing. Tyler got nothing. Y-bum got nothing.
Tyler: You can either do it or you can’t.
Steve: You can either get cash-out or you cannot get cash-out. It’s just totally up to you and the value of your house.
Tyler: Yes.
Steve: Let us see what the book says. Remember we are talking about this book that’s right sometimes and not right sometimes, and here is what it says, which is wrong. A cash out refinance is the exact same process as a refinance. Only this time, you come away from the closing table with a check in your hand. You actually don’t because on a refinance, you have to close and you have a rescission period, so you do not walk away from the table with money in your hand at all. So that is wrong.
Taken from the equity in your home for instance, you refinance your 8% rate on a 125,000 loan to six months and 5%. But instead of refinancing 125,000, you obtain a new loan for 150,000 giving you $25,000 extra to do with what you please.
No, you have closing costs. You’re not exactly going to 25,000. Maybe you’re going to get 20,000, maybe 19,000. Maybe in the guy’s case of the refi we just did yesterday, Tyler. You are going to have $15,000, fifteen grand and escrows. Well, guess what? When your taxes are $9,000 a year and they’re due on two months, I got to collect for them and when your insurance is 5,200 bucks a year, I got to collect for that. You don’t exactly get 25 grand out in this scenario. “Not a bad deal, right?” That’s what is says, not a bad deal Colorado Springs Mortgage
Yes, it’s not bad but there are some things you must pay attention to. otherwise, you might make some critical mistakes. The first mistake often made is the amount requested compared to the value of your home because you think your house is worth more than it actually is. So, you can do a cash-out refi, please do. That’s how I get paid by closing loans, so I am not going to get upset.
By the way, if you’re doing a Tulsa mortgage with any guy who gets paid a salary, you’re doing your mortgage with the wrong guy. Commission isn’t a bad thing because this entire total lending concepts, we get paid when we close loans. I think that’s very, very good because I have a very big motivation to get your loan closed. It is called my-kids-get-to-eat. Whether you do a cash-out refi, or you do a rate and term refinance or you buy a house or whatever, I get paid the same. I am not incentivized in any way to give you a higher rate, a different loan program, anything. I make the same amount of money no matter what. It does not matter.
No matter what, I am on the same income. Right Tyler? So are you.
Tyler: Yes.
Steve: We are on the same comp. We’re going to make sure that you’re taken care of and you get the right program for you because it doesn’t matter to us. In fact, we have a lady right now, we originally had her as FHA and we’re switching her to conventional. It doesn’t matter, don’t matter to us.
Taylor: No.
Steve: Because it’s the best thing for the customer and it really doesn’t change our compensation at all. We don’t worry about it. There we have it. That’s all we got for today guys. I’m Steve Currington.com. I’m here with Tyler. Well, it’s my name.
[Laughter] Colorado Springs Mortgage
I’m here with Steve. Hi guys, I’m SteveCurrington.com.
Taylor: Steve, he’s here with Steve.
Steve: I am here with Steve. It feels like I’m a Steve because I have to do this.
Recording: Tyler, are you awake? Wake up Taylor.
Steve: Thanks for listening to us today about, your Tulsa mortgage cash-out refinance. That’s all we’ve got for today. We’ll see you.
Recording: Broadcasting live from Koala Studios in Tulsa Oklahoma, you’re listening to The Steve and Tyler Show.
[00:10:54] [END OF AUDIO]