Print this page or keep it open while you talk with at least two lenders about mortgage rates. It goes with the 5 guides on Cash-Out Pricing Explained. Sections are ordered by how often those guides discuss each topic, and each one quotes what the guides say about it. Write each lender's answer in its column, then compare. Nothing here is collected or sent; the boxes are for pen and paper.
Read before you call
One point from each guide on this site, so you can follow what each lender tells you.
- “A cash-out refinance replaces your current mortgage with a larger one and pays you the difference.” From What Affects Cash-Out Refinance Pricing
- “A home equity line of credit is a revolving line secured by your home.” From Second-Lien Alternatives: HELOCs and Home Equity Loans
- “A cash-out refinance replaces your current first mortgage with a larger one and gives you the difference in cash, minus costs.” From Cash-Out Refinance, Home Equity Loan or HELOC?
- “The cash you receive is the new loan amount minus your current payoff, closing costs, prepaid items and any new escrow deposit.” From Cash-Out Closing Costs and the Right to Cancel
- “Before estimating any amount, write down exactly what the cash is for: a renovation, paying off higher-cost debt, education or a reserve.” From A Cash-Out Budget Worksheet: Planning How You Use the Proceeds
Questions from this site's guides
| Question | Lender 1 | Lender 2 |
|---|---|---|
| What is my combined loan-to-value after the new loan? | Lender 1 answer | Lender 2 answer |
| Is the rate fixed or variable, and what index does it follow? | Lender 1 answer | Lender 2 answer |
| What are the draw and repayment periods? | Lender 1 answer | Lender 2 answer |
| Are there annual fees or early-closure fees? | Lender 1 answer | Lender 2 answer |
| How does the total cost compare with a cash-out refinance? | Lender 1 answer | Lender 2 answer |
From the checklist on this site.
Pricing questions
What the guides on this site say:
- “Investors view taking equity out as somewhat higher risk than a straight refinance, so pricing adjustments for cash-out commonly apply.” From What Affects Cash-Out Refinance Pricing
- “Higher LTV usually means larger pricing adjustments; each program also sets a maximum.” From What Affects Cash-Out Refinance Pricing
- “Credit score: combined with LTV in the pricing grids conventional investors use.” From What Affects Cash-Out Refinance Pricing
| Question | Lender 1 | Lender 2 |
|---|---|---|
| Which details of my file is this quote based on: credit, loan-to-value, loan amount, property type and occupancy? | Lender 1 answer | Lender 2 answer |
| Can you issue the Loan Estimate on the same day as the other lenders I am comparing? | Lender 1 answer | Lender 2 answer |
| Which items on this quote could still change before closing? | Lender 1 answer | Lender 2 answer |
Questions based on CFPB: Loan Estimate explainer.
Your Loan Estimate
What the guides on this site say:
- “Cash-out refinances include appraisal, title, recording and lender fees.” From What Affects Cash-Out Refinance Pricing
- “Fees financed into the loan reduce the cash you actually receive.” From What Affects Cash-Out Refinance Pricing
- “Ask about draw period length, how payments change when repayment begins, any annual or inactivity fees, and whether the lender can freeze or reduce the line if values fall.” From Second-Lien Alternatives: HELOCs and Home Equity Loans
| Question | Lender 1 | Lender 2 |
|---|---|---|
| Can you send me an official Loan Estimate for this exact scenario? | Lender 1 answer | Lender 2 answer |
| Which fees in the Loan Costs section are your own charges, and which are third-party charges? | Lender 1 answer | Lender 2 answer |
| Which services on the Loan Estimate can I shop for myself? | Lender 1 answer | Lender 2 answer |
Questions based on CFPB: Loan Estimate explainer.
Loan features
What the guides on this site say:
- “A home equity loan pays a lump sum with a fixed rate and fixed term.” From Second-Lien Alternatives: HELOCs and Home Equity Loans
| Question | Lender 1 | Lender 2 |
|---|---|---|
| Does this loan have a prepayment penalty? | Lender 1 answer | Lender 2 answer |
| Can the interest rate or monthly payment change after closing? If so, when and how? | Lender 1 answer | Lender 2 answer |
| Will I have an escrow account for property taxes and insurance? | Lender 1 answer | Lender 2 answer |
Questions based on CFPB: What is a prepayment penalty?.
Points and lender credits
What the guides on this site say:
- “Pricing adjustments for cash-out may appear as points or as a higher rate.” From Cash-Out Closing Costs and the Right to Cancel
| Question | Lender 1 | Lender 2 |
|---|---|---|
| Does this quote include discount points or lender credits? | Lender 1 answer | Lender 2 answer |
| What would the same quote look like with no points and no credits? | Lender 1 answer | Lender 2 answer |
Questions based on CFPB: Discount points and lender credits.
Rate lock
| Question | Lender 1 | Lender 2 |
|---|---|---|
| Is my interest rate locked yet? If so, on what date does the lock expire? | Lender 1 answer | Lender 2 answer |
| What happens if closing is delayed past the lock date, and is there a cost to extend it? | Lender 1 answer | Lender 2 answer |
Questions based on CFPB: What's a rate lock?.
Before you choose
What the guides on this site say:
- “Your first mortgage terms are favorable compared with today’s market.” From Second-Lien Alternatives: HELOCs and Home Equity Loans
- “Compare the total cost of a second lien over the time you will carry it with the cost of replacing the whole first mortgage.” From Second-Lien Alternatives: HELOCs and Home Equity Loans
- “Your current servicer issues a payoff statement showing principal, interest through the payoff date and any fees.” From Cash-Out Closing Costs and the Right to Cancel
| Question | Lender 1 | Lender 2 |
|---|---|---|
| What are your individual and company NMLS IDs, so I can look them up? | Lender 1 answer | Lender 2 answer |
| Who will service the loan after closing? | Lender 1 answer | Lender 2 answer |
Questions based on NMLS Consumer Access.
This worksheet is general education. It does not ask for or store any personal information, and it is not an offer or a pre-approval. Compare written Loan Estimates, and verify every lender on NMLS Consumer Access.
Sources
- CFPB: Loan Estimate explainer
- CFPB: What is a prepayment penalty?
- CFPB: Discount points and lender credits
- CFPB: What's a rate lock?
- NMLS Consumer Access