Cash-Out Refinancing Just Got Better: No PMI, Up to 90% Loan to Value (LTV)

Discover a cash-out refinance option that gives you access to more of your home’s equity without PMI

If you’re a homeowner looking to access the equity you’ve built in your home, there’s a special financing option that might be the perfect fit for you. At Innovative Mortgage Brokers, we have access to an exclusive program available to homeowners in Pennsylvania and Florida, allowing you to take out cash against the value of your home—up to 89.99% loan-to-value (LTV). This program is ideal for those who have built up considerable equity and are seeking flexibility in how they use that cash, whether it’s for home improvements, consolidating debt, or even investing in other opportunities.

In this article, we’ll break down how this program works, who it’s best suited for, and how it compares to other cash-out refinance options. We aim to provide you with a clear, informative overview, so you can determine if this program is the right fit for your financial goals.

What Is a Cash-Out Refinance?

A cash-out refinance is a type of mortgage refinancing in which you replace your existing mortgage with a new one that’s larger than your current mortgage balance. The difference between your old loan balance and your new loan amount is then paid out to you in cash, which can be used for virtually any purpose.

For example, if your home is worth $500,000 and you owe $300,000 on your current mortgage, a cash-out refinance allows you to take out a new mortgage of up to $449,950 (in the case of this 90% program). After paying off your current loan, you would receive the difference in cash.

Key Features of Our 90% Cash-Out Refinance Program

• High Loan-to-Value (LTV) Ratio: This program allows homeowners to take out up to 89.99% of their home’s value, which is higher than many traditional cash-out refinance programs that often cap LTV at around 80%. This gives you the ability to access more cash from your home equity.
• No Mortgage Insurance: Despite allowing an LTV of up to 89.99%, this program does not require private mortgage insurance (PMI). Mortgage insurance can significantly increase monthly payments, so its absence is a major benefit to homeowners looking to maximize their cash flow after refinancing.
• Flexible Credit Requirements: To qualify, you need a minimum FICO score of 680. While higher credit scores may secure even better rates, the 680 FICO minimum ensures this program is accessible to many homeowners.
• Eligibility for Various Property Types: This program is available for 1-4 unit primary residences, including single-family homes, planned unit developments (PUDs), and condominiums. This flexibility makes it an attractive option for a wide range of homeowners.
• Competitive Loan Limits: You can take advantage of this program with loans up to $803,500 for single-unit properties. For multi-unit homes, the loan limits align with the current conforming loan limits set by the Federal Housing Finance Agency (FHFA).

• No Restrictions on Cash-Out Amount: Unlike some programs that limit the amount of cash you can receive, this one allows you to access unlimited cash-out as long as you meet the 89.99% LTV requirement.
• Quick Access to Cash: This program requires only six months of seasoning on the current mortgage. That means if you’ve owned your home and had your current mortgage for at least six months, you’re eligible to apply, making it faster to access the funds compared to other options that may require up to 12 months of ownership.

Who Can Benefit from This Program?

The 90% Cash-Out Refinance program is ideal for homeowners who have built substantial equity in their homes and want to take advantage of it. Here are some specific scenarios where this program may be beneficial:

• Homeowners Looking to Make Improvements: If you’ve been planning to upgrade or renovate your home, whether it’s remodeling the kitchen or adding an extension, this program gives you access to a significant amount of cash without requiring a home equity loan or second mortgage.
• Debt Consolidation: Many homeowners choose to use the funds from a cash-out refinance to pay off high-interest debt, such as credit card balances or personal loans. By consolidating these debts into a single, lower-interest mortgage, you can reduce your overall financial burden and simplify your monthly payments.
• Investment Opportunities: Whether you’re looking to invest in real estate, start a business, or make other long-term investments, the extra cash from this refinance option provides flexibility to fund your goals.
• Paying for Education or Major Life Events: The funds can also be used to cover major life expenses like college tuition, weddings, or medical bills, providing you with a financial cushion when you need it most.
• Refinancing to Lower Your Rate: While cash-out refinances are often about accessing equity, they also allow homeowners to take advantage of lower interest rates. If rates have dropped since you took out your original mortgage, refinancing now could save you money on interest over the life of the loan.

Comparing with Traditional Cash-Out Refinances

Compared to standard cash-out refinance programs, this 90% LTV option offers a higher limit on how much equity you can access. Here’s how it stacks up against more common refinancing options:

• Higher LTV Limits: Standard cash-out refinances typically cap at 80% LTV. This means you can only borrow up to 80% of your home’s value. With the 90% LTV option, you can access up to 89.99%, giving you access to more of your home equity.
• No Mortgage Insurance: Some traditional refinance programs that allow higher LTVs may require private mortgage insurance (PMI) if the LTV exceeds 80%. This program eliminates the need for PMI, keeping your monthly payments lower.
• Shorter Seasoning Period: The six-month seasoning period required by this program is shorter than the 12-month requirement seen in many other cash-out refinance options, allowing you to access your equity sooner.

Important Considerations

While this program offers many benefits, it’s essential to approach any cash-out refinance with careful consideration. Here are a few points to keep in mind:

• Interest Rates: Cash-out refinances typically come with slightly higher interest rates than rate-and-term refinances. However, this program offers competitive rates, and the absence of mortgage insurance can offset some of those costs.
• Future Financial Planning: While accessing your home equity can provide immediate financial relief, it’s important to think about the long-term implications. Taking on a larger mortgage means you’ll owe more, so make sure the benefits of accessing cash outweigh the costs of increasing your mortgage balance.
• Market Fluctuations: Home values can fluctuate over time, so consider your home’s future value when deciding how much equity to tap into. It’s crucial not to over-leverage your property in case the housing market takes a downturn.

How Innovative Mortgage Brokers Can Help

At Innovative Mortgage Brokers, we’re here to help you navigate this exclusive cash-out refinance program, available to homeowners in Pennsylvania and Florida. With access to real-time mortgage rates and a wide network of lenders, we can provide personalized guidance to ensure you get the best terms for your unique situation.

Our team will work closely with you, explaining the ins and outs of the program, reviewing your eligibility, and helping you maximize your home equity. We’re committed to making the refinancing process smooth, transparent, and tailored to your needs.

Ready to Access Your Home’s Equity?

If you think this 90% Cash-Out Refinance program is right for you, or would like to learn more and discuss your options, contact Innovative Mortgage Brokers today. We’re here to answer your questions, guide you through the process, and help you take full advantage of the equity you’ve built in your home.