Cash Out Refinancing Explained Through Loan Love's New Article Guide

SAN DIEGO, Oct. 11, 2013 /PRNewswire-iReach/ -- is a borrower advice website that provides detailed insights into the mortgage industry in a fun and entertaining way. The team at is devoted to help empower both first time and experienced homeowners with valuable resources, first-class knowledge and connections to top-rated industry professionals and has the mission of helping consumers and borrowers to obtain the latest information on mortgage lending trends, the real estate market and the U.S. financial landscape in order to help them obtain a home loan that they will love. Loan Love continues to be progressive by helping loan borrowers find the best loans for their specified financial situations with their continuously updated material such as their articles and videos. currently has a new article titled "What Is A Cash Out Refinance? (Clearing The Fog)" to help get the concept of cash out refinancing through to readers and inform them on the advantages of taking on a cash out refinance mortgage.

As the Loan Love article initially starts off: "It used to be that one of the goals of homeownership was to eventually pay off your home loans and live in your house mortgage-free. Sucker! Nah, just kidding. But it is true that in the past couple of decades, that kind of mindset has kind of gone by the wayside for a lot of people. Why? Well, for one thing, tax laws that let you deduct your mortgage interest are a big plus for a lot of homeowners: Pay off your mortgage and you lose one of the biggest tax advantages available to the average (i.e., not super-rich) person. Also, while your parents or grandparents may have had a difficult time accessing any equity they'd built up in their home over time, many lenders today have made it easy to tap into that equity with equity loans, lines of credit and the ever-popular cash-out refinance."

But what exactly is a cash out refinance? Loan Love goes on to explain the concept of a cash out refinance: Basically under the circumstances over normal housing market, a loan borrower's home may be subject to an increase of value over the course of time. While paying off their mortgage loan, they may begin to notice a significant gap between what was originally owed to their house and what the house is actually worth. The gap would be the home's equity that can be freed up and can be drawn out in a cash out refinance loan. This type of refinancing gives an option to home owners to refinance the conditions and terms of their loan by allowing a new and bigger mortgage on top of their existing one. This will enable home owners to access a certain amount of equity that has been built up on their home. An example of how cash out refinancing works is described in's article with the following:

"For instance, say you have a mortgage of $150,000 remaining on your home. Over time, the value of your home has increased to $250,000. That $100,000 difference is the equity you have in your home, and thanks to the cash-out refinance, it could be burning a hole in your pocket in just a few weeks. Of course, you typically can't access the entire amount of your equity. Usually, you're limited to a loan-to-value (LTV) ratio of about 80%, although some lenders may allow 90% LTVs (generally with a significantly higher interest rate as well as points – and you'll also have to pay private mortgage insurance)."

Whatever the reason may be, there are many viable reasons why loan borrowers may want to take a cash out refinance loan, and the article includes a list for the most common reasons why. But regardless of the reason, the article ends with Loan Love pointing out that the equity is still a home owner's money and by using cash out refinancing, they can make the best of it by refinancing to the current lower mortgage interest rates. To learn more on cash out refinancing, please visit for the complete article.

Media Contact: Kevin Blue,, 949-292-8401,

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