Cash-out Refinance Mortgages
Use cash out for a variety of purposes
Whether your borrowers are looking to receive cash out from the increased value of their home to use for debt consolidation, or for any other purpose, Freddie Mac's cash-out refinance mortgage options could be the solution.
Our cash-out refinance mortgage offers flexibility and variety so you can meet a diverse range of borrower needs: obtaining cash for home improvements, reducing a rate and monthly payment, paying off a purchase money junior lien used for any purpose, or paying off a leasehold interest. Plus, all related closing costs, financing costs and prepaid items can be rolled into the new loan amount, further maximizing your borrower's cash flow potential.
In addition, our special purpose cash-out refinance mortgage allows borrowers in special circumstances to use the proceeds of the refinance transaction to buy out the equity of a co-owner. With the special purpose cash-out refinance mortgage in your product line, you can now offer your borrowers another option to meet their specific needs.
|Eligible Mortgage Products||
|Maximum LTV Ratios for New Mortgage||
|Down Payment or Closing Costs||
* See our selling system availability matrix for a list of specific mortgages eligible for sale best efforts or mandatory, servicing released.
|Special Delivery Requirements||
|Single-Family Seller/Servicer Guide||
Cash-out refinance mortgages help you:
- Meet the needs of more refinance borrowers looking to leverage their home equity for a variety of purposes.
- Improve efficiencies using Loan Prospector.
- Retain more of your customer base in refinance markets.
- Meet the needs of borrowers with special circumstances using the special purpose cash-out refinance option.
Benefits for Your Borrowers
Cash-out refinance mortgages help your borrowers:
- Receive cash out to consolidate debt or for any other purpose.
- Pay off junior liens, including HELOCs. Pay off a purchase money junior lien or a leasehold interest, pay for home improvements or buy out the equity of an ex-spouse, joint heir or joint devisee.
- Eliminate upfront costs by rolling all closing costs, financing costs and prepaid items into the new loan amount.
For More Information
- Call your Freddie Mac representative.
Visit The Learning Center for live and recorded web conferences, access to classroom-style workshops and self-study tools – all designed to help you stay competitive, serve more borrowers and make it easier to do business with us.
The information in this document is not a replacement or substitute for information found in the Single-Family Seller/Servicer Guide and/or the terms of your Master Agreement and/or Master Commitment.