We’re proud to share this success story, as we helped a Veteran achieve his dream. Our country owes our veterans… And we love helping them whenever possible. Thank you for your service and sacrifice, veterans!
How we helped an Eagle fly…
Refinancing your home can be for a vast number of reasons. The most common reasons to refinance are to lower monthly payments and/or reduce the length of a loan’s term - maybe even pull a little cash out. The cash-out option is always nice (who doesn’t appreciate little bit of financial cushion?), but it’s a little complicated – let us explain.
Learn about cash-out refinancing, other ways you can leverage equity here: 3 Ways to Leverage your Home's Equity
For cash-out refinancing, underwriting will ask for a Letter of Explanation (LOE) – a document that explains the intention/purpose of the cash out. If the money is to be used as down payment for another property, underwriters will want to know about the other property. They want to be sure to include the expected payment in the debt-to-income rations (DTI). The answer you give really only matters if you are increasing your monthly expenses. But the reason, I received from a recent client (a Veteran - and it's always our pleasure to serve those who served our country, thank you) was perfect.
Our Veteran client decided he wanted to refinance to a long-term fixed rate loan… and pull $100,000 cash out while doing so.
His reason: he was ready to fulfill his dream and buy an engine for the plane he was building. He has been a pilot for many years with thousands of hours in the sky - but that wasn’t enough. After having owned many different planes, he decided that it was time to build his own… He felt it was much more personal and intimate, than just buying a plane (as he had done multiple times before).
Building an entire plane is a monster task, as I would imagine. Luckily, our client had help from his friend who had experience in the process. They often flew to various airports in a caravan of planes just to have lunch or visit a local specialty shop.
The FAA has strict guidelines of safety and workmanship when it comes to plane manufacturing and kit planes lack none of the requirements. He wouldn’t want the rules to be lenient anyway – it’s his life and even though our borrower is 70+, he plans on staying strong and continuing to fly to his heart’s content.
I hope he smiles every time he flies… I know I do every time I see a small plane passing overhead.
Rates for refinancing are slowly increasing, but still at levels that would benefit most homeowners. Check out our blog about refinancing here (How Refinancing Can Help... Today!). If you have questions unique to your situation, please head over to our Contact Us or call/text (909) 376-8399.
Unfortunately, yes. The CFPB (Consumer Financial Protection Bureau) posted an article not too long ago about proposed changes...
In our 2nd success story, we helped a Veteran turn equity into cash... which he used to fulfill his dream purchase: a plane engine!