Alaska Refinance Loans – Should You Get a Cash-Out Refinance?

March 16th, 2022 by admin No comments »

If you own a home in Alaska and need some fast cash, you may benefit from a cash-out refinance. Though most states have a low limit on the amount of money that you can get on conforming cash out refinance loans, Alaska doesn’t apply the same strict rules. This means that Alaska borrowers can get the max out of their house when they need it.

If you are wondering what exactly an Alaska cash-out refinance is and whether or not it is for you, here is some basic information on how this type of refinancing works:

Money In Your Pocket

Cash-out refinancing is a way to refinance your mortgage and leave the closing with cash in your pocket. All you have to do is refinance your mortgage for more than you currently owe. This allows you to pocket the difference at closing. There are no limits as to what you can and can’t spend the money on, making this type of loan very user-friendly.

Borrowing Limits

While the state of Alaska has abnormally high limits when it comes to conforming loans, you will only be able to borrow as much as your house is worth. In most cases, you will be limited to 80 percent of your home’s value. However, there are lenders who are more flexible and may be willing to loan you as much as 125 percent of the value of your home.

Closing on a Cash-Out Refinance Loan

Closing on a cash-out refinance loan is a lot like closing on a traditional mortgage or mortgage refinance. The length of time it takes to close is similar and you will be required to pay closing costs. The amount you pay will depend on the lender you choose. Average closing costs in Alaska are a bit higher than the national average and typically cost anywhere from $3,000 to $4,000 out of pocket.