Question

When in the duration of the loan is it optimal to do cash-out refinance? What about non-cashout refinance?

Answer 1

A cash-out refinance can be a good idea if you want to refinance and access the value in your home. ... A cash-out refinance can make sense if your new loan gives you a lower interest rate – say, you bought your home when rates were much higher – and you plan to use the cash for home improvements or college expenses.

Generally, your name must be on the title of your home for a minimum of six months if you have a conventional mortgage, jumbo loan or VA loan and want to do a cash-out refinance. You'll likely need to wait between six months and a year for a cash-out refinance after you buy a property with an FHA loan.A no cash-out refinance refers to the refinancing of an existing mortgage for an amount equal to or less than the existing outstanding loan balance plus any additional loan settlement costs. It is done primarily to lower the interest rate charge on the loan and/or to change some of the terms of the mortgage.