San Diego Conventional Home Loan Cash Out Refinance - Rates, Limits & Details (2024 Update)

(Please note - these numbers below have been updated for 2023 and are specifically for San Diego however we can do loans throughout California. We do our best to make sure everything is correct at the time you are reading it.)

In this post we break down the conventional home loan cash out refinance in San Diego

This mortgage loan is great if you have built up equity, want to take some cash out to use as you wish, and put yourself in a great financial position. 

In this post I cover:

Here's the main points and highlights of the program... 

(Please keep in mind we are approved with 40 +/- wholesale lenders in the state and the guidelines below are a great rule of thumb and not written in stone. Once you apply we will select which lender best suits your needs).

→ Principal Residence: Allows a new loan amount up to 80% of your homes value - 80% LTV loan (let's assume your home is appraised at $1,000,000 x .80 loan value = $800,000 new loan amount).

→ Second Home/Investment Property: Allows a new loan amount up to 75% of your homes value - 75% LTV loan (let's assume your home is appraised at $1,000,000 x .75 loan value = $750,000 new loan amount)

  • Maximum loan amount is $977,500 (this is the maximum allowed for a super conforming loan in San Diego for 2023. Above this amount we will simply change the loan to a Jumbo Loan refinance).

  • Typically you need a middle credit score of 620 or higher (When we run your credit that is the score we use - not Credit Karms, Credit Sesame, or the like. If it's just you, it's your middle score. If it's you are a co-borrower we use the lowest middle score). 

  • Generally you can have a max debt to income (DTI) ratio of 50% or less (we get this by adding up your total gross monthly income over 12 months / your current monthly debts + future housing payment = your DTI ratio)

  • Generally speaking we will need to do a physical appraisal of your home for the value. However, we may be eligible for an automated appraisal online depending on your homes value, ease of getting comparables, your credit profile, etc. 

  • You will have closing costs for your refinance and they can be payed one or a combination of a few ways - use a lender rebate to help cover costs, put them into the loan amount so you can no $$$ out of pocket, wire in money at the close of escrow to cover, or a combination of all 3
  • You will have the option to have an escrow impound account (where you pay your homeowners insurance and taxes monthly) or the ability to pay these on your own outside the loan directly to each respective source. 

Here's 5 of the most common questions I get (and how I answer them)... 

(Please keep in mind your personal situation might be different and these are used as examples only).

→ Question #1: When is a cash out refinance a great idea?

There's many possible reasons such as: If you have built up equity in your house, have other higher interest debt (such as personal loans, credit cards, car loans, student loans, etc) and by taking cash out and paying these off lowers your total monthly debts. 

→ Question #2: Let's assume I have no other debts besides my current housing payment - what else could cash be used for?

Here's a few examples: Take a vacation, buy a car, put money in kids college funds, invest in other real estate, invest in a business, other investments outside of real estate, have a "rainy day" fund of 12 months, stock up on storable foods, etc. 

→ Question #3: When and how do I get my excess cash?

Once we close escrow they will be either wiring you the excess funds or they will be mailing you a check depending on how you choose to get your funds. You can expect to get these funds within 5 business days of closing. 

→ Question #4: What happens to the escrow impound account from the loan we are refinancing and paying off?

If you have an escrow impound account from the loan we are refinancing (that's your property taxes and homeowners insurance), and there's a balance due you, your past lender will be mailing that out to you within 21 business days. It's always best to check with them and see to make sure. 

→ Question #5: How long does this loan take? 

Once you have applied with us, provided your needed supporting documents, we will be opening escrow, submitting your loan, and ordering the apprisal (if needed). We can definently close a cash out refinance loan in 21 days or less assuming we get what we need from you in a timely manner. 

Here's 5 secrets of this loan (or misconceptions) you might not be aware of... 

(Please keep in mind your personal situation might be different and these are used as examples only).

 Secret #1: Just because your new mortgage rate might be higher than your current it still could make sense.

Instead of just focusing on your mortgage rate only look at your entire financial picture. If you have debts such as: personal loans, car loans, credit cards, student loan debt, etc - it might make sense to take cash out, pay some/all of these off, lower your total monthly debts - even if your mortgage rate went up. 

 Secret #2: You can even miss a mortgage payment (or two)

Depending on when we close during the month will determine when your next payment is due. But, we can typically have it structured to where you can miss one, and even two monthly payments. 

 Secret #3: You do NOT need to pay closing costs out of pocket

The most common way to finance closing costs (and prepaids if you choose an impound account) is to simply "roll" those into your new loan. Doing this limits your cash out of pocket to very little, if anything. 

 Secret #4: You can do this as many times as you want

Generally speaking you can refinance as much as you want. Lets assume you do a refinance a few years ago when values were higher. Then, over the last 24 months or so prices have really gone up quite a bit. You can refinance again and take advantage of more built up equity. 

 Secret #5: We *may* be able to skip most supporting documents from you and an appraisal

Depending on your loan amount, your loan to value, what your house appraises for, your loan profile, etc will determine if we need a physical appraisal or not and how much supporting documents from you we will need. 

Basic documentation needed from you (or you and co-borrower) to begin... 

(Please keep in mind these are the basic documents we will probably need. Depending on your personal situation we may need more or less and will advise accordingly). 

  • Copy of your drivers license (screen shot is fine)

  • Copy of your social security card (screen shot is fine)

  • Copy of your latest mortgage statement (please be PDF)

  • Copy of your homeowners insurance policy (please be PDF)

  • Copy of your latest HOA statement (please be PDF)

  • Last 30 days paychecks (you should get these from your employer via email and PDF each time you are paid). 

  • Last 2 months bank statements - all pages (You just log into wherever you have a bank acount online and save the last 2 months via PDF.)

  • Last 2 years taxes and W2's - If you do not have them you can get them from the IRS website here

  • Latest statements if you have anything like: 401(k), retirement, stocks, bonds, mutual funds, etc

  • If you are self employed we will need last 2 years taxes and W2's (if applicable) as well as year to date profit and loss sign and dated (you can do this - doesn't need to be a CPA). 

  • We can potentially need more depending on this like: pay or collect child support, have been divorced, have had a short sale or foreclosure, have filed bankrupcty, have rental properties, etc. 

Here's how to get started right now... 

  1. Fill out my online application at Scotts Loan If it's just you - then you fill it out just for yourself. If you are married - it's you and your spouse (regardless if they work or not, their income, their credit, etc.) If its you and a co-borrower - then you both fill it out.

  2. Once complete I will be alerted, check everything over, send you out a list of needed supporting documents, and clarify anything if needed

  3. Once I get the needed supporting documents from you I will double check th application, your needed supporting documents, pull your credit report (it's currently $38 +/- and I pay for that), and get back to you with best scenarios.

  4. If doing a cash out refinance isn't a possibility or it's better we go with another loan program we can always easily switch to that instead. 

I would love to help assist you with your conventional cash out loan - please feel free to give me a call, text, or use the form below. 

Your Conventional Cash Out Loan Insider,


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