Getting cash back is one of the most popular reasons people choose to refinance their mortgage. Qualifying borrowers can leverage their home equity to take out a loan worth more than the value of their property and receive the difference in cash. Unlike personal loans or credit cards, cash-out refinancing can actually help you save money in the long run and finance other projects or financial goals in your life (think home improvements or renovations, college tuition, etc.)
After closing on a cash-out refinance, your cash-out funds will be distributed by the title company. If your loan is for a primary residence, you’ll typically have a three-day rescission period after closing. During this time, you can technically “rescind” or cancel the transaction. Four business days after closing, your lender will be able to disburse cash-out funds to the title company. Note that for an investment property or a second home, there is no rescission period.
At Better Mortgage, we work with our affiliate Better Settlement Services to streamline this process and disbursement typically takes 24-48 hours. You can receive your cash back via wire transfer or overnight check. If you want your funds to be wired to you, you’ll need to fill out a form from the notary that details your bank information. If you don’t complete this form at signing, the title company will send your funds via an overnight check.
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