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Rahman Ray
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No cash out

Rahman Ray
Posted May 17 2023, 13:40

Hello I’m looking at a bank that offers a rehab loan. It’s list that there is no-cash out allowed. Am I correct in thinking that that’s not a good thing?

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Joe Villeneuve#4 All Forums Contributor
  • Plymouth, MI
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Joe Villeneuve#4 All Forums Contributor
  • Plymouth, MI
Replied May 17 2023, 14:22

That's a rate and term loan.  All that does is replace your current debt with better terms.  The idea is to reduce the monthly payment by either basing the loan on a lower base amount (reduce balance from the original loan), a lower interest rate, or a combination of both.

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Rahman Ray
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Rahman Ray
Replied May 17 2023, 15:08

Thank you, Joe