• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Sonoma County Mortgages

Contact Us About Mortgage Financing

All financing provided by New American Funding

(707) 217-4000 | Prequalify Now

Search Sonoma County Mortgages

  • Home
  • Purchase
    • How Much Down Payment To Buy A Home?
    • How Much Income You Need To Buy A Home
    • How Much Should I Save For Buying A Home?
      • How Rates Affect Payment
    • No PMI Mortgages
    • FHA Loans
    • Sonoma County Disaster Loans
    • Jumbo Loans
  • Refinance
    • Mortgage Rates
    • Does It Make Sense To Refinance?
      • Get Your Refi Paperwork In Order
    • How To Pay Off Your Loan Faster
    • How To Remove PMI
    • How Lenders Price & Quote Loans
  • Loan Programs
  • Payment Calculator
    • Mortgage Affordability Calculator
  • Blog
  • Videos
  • About SCM
  • About Scott Sheldon

Primary Sidebar

Sonoma County Mortgages is a part of New American Funding

New American Funding - NMLS #6606

Get Your Latest Rate Quote Now!

Doing A Cash Out Refinance: Why Do I Have To Close My Accounts?

March 12, 2013 by Scott Sheldon

Share on Facebook Share on Twitter Share on LinkedIn Share on Email

This depends on whether or not the cash taken out is to pay off debts for the purposes of qualifying for the mortgage. Since paying off debt to qualify for the mortgage is not permitted, lender will most likely require you to pay off the account through the close of escrow and close the account by providing supporting documentation.

You can do a cash out refinance  on both FHA Loans and Conventional loans up to 85% loan to value on a primary residence transaction. Doing a cash out refinance, does not necessarily mean you have to close accounts for the purposes of qualifying, but if the cash out raises the loan amount to the point where the liabilities exceed the income, the only way to reduce the liabilities is to consolidate them by paying them off in full and subsequently closing them. Lenders are concerned about future debt accumulation because of the possibility of the consumer putting themselves back in the same position, cash out refinance is getting them out of.

If you’d like to get a complementary mortgage rate for a cash out refinance start online with us today!

Related Mortgage Advice from Scott Sheldon

  • My loan is through Freddie Mac, why do need I cash to close on my HARP 2 Refinance?

    What steps can be taken if the mortgage is now Freddie Mac?  Cenlar services the…

  • Why do I have to close my credit cards on a cash out refinance?

    The lender wants to make sure future debt obligations do not impact the integrity of…

  • Why am I being quoted a higher rate on my Harp 2 Refinance? I see 30 year fixed mortgages rates at 3.5%!

    Anyone who is looking at the Harp 2 Refinance Program, stands to benefit by a…

  • Why Is My Financed Loan Amount On My FHA Loan Bigger?

    Buying or refinancing a home? An FHA loan much like a USDA loan, has two…

Filed Under: Refinance Loans Questions and Answers

Get Sonoma County Mortgages News and Updates in Your Inbox

Footer

SCM on Facebook

SonomaCountyMortgages.com

Connect on Facebook

SCM On Instagram

Follow Sonoma County Mortgages on Instagram

Follow on Instagram

SCM on Zillow

Zillow Reviews for Scott Sheldon, New American Funding

See Reviews on Zillow

Location & Contact

Sonoma County Mortgages and New American Funding are an Equal Opportunity Housing Lender

Scott Sheldon, Senior Loan Officer
NMLS ID# 287389
2455 Bennett Valley Road C107
Santa Rosa, CA 95405
1-707-217-4000
View SCM Map | Email Us!

Map of Sonoma County Mortgages New American Financing Office

View Map on Google

Copyright 2010–2023 SonomaCountyMortgages.com · About Us · Sonoma County Loans · Privacy Policy · Terms Of Use · Legal · Site Map

NMLS Consumer Access © New American Funding. All rights Reserved. NMLS ID#6606.
Corporate Office 14511 Myford Road, Suite 100, Tustin, CA 92780. We at New American Funding take great pride in our customer service and make it our number one priority. We encourage you to contact us for complaint resolution or any post-closing questions you may have regarding the servicing of your loan. We strive to have your experience with New American Funding a stellar one. In the rare case that our service did not meet your expectations, please call our customer care hotline at 1-800- 450-2010, ext. 7100 or you may contact us by email customerservice@nafinc.com. Please leave a detailed message and we will follow up with you no later than the end of the next business day. If you are using a screen reader or other auxiliary aid and are having problems using this website, please call 800-450-2010 Ext. 7100 for assistance.

State Licensing (Opens in New Window) | Privacy (Opens in New Window)
Terms of Use (Opens in New Window) | Electronic Consent Agreement (Opens in New Window)
Opens in new window Opens an external site Opens an external site in a new window