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Frequently asked questions

Can you use cash out refinance funds to purchase another property?

Yes. Many homeowners use cash-out refinances to get the funds they need for a down payment on a new property or buy a new home in cash if they have enough equity.

Something to keep in mind is that expenses related to the new property will impact your debt-to-income ratio (DTI). So when you apply for the cash-out refinance, your Home Advisor may want to see a sales contract for the new home and ask some questions about the property taxes and insurance you’re expecting to pay.

If your new DTI (after completing the cash-out refinance) will be above 45%, Better Mortgage will need to know that you have at least 6 months of housing reserves in assets. This shows that you have enough funds to cover your new mortgage payments if anything happens to your income or employment.

See your refinance rates with Better Mortgage, or use this cash out refinance calculator to see how much you could borrow and what the cost of your new monthly payment would be.

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