A lot of Americans find themselves watching their budget a lot closer than they would like to have to. If you’ve bought gas, groceries, or practically anything for that matter, you know exactly why that is. 

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The cost of homes soared and left many people living in a smaller home even though they want and/or need to have more room.  

Whether you need to add more space or just need some extra cash, this re-fi mortgage could be the answer to what you’re looking for. 

It’s called the FHA Cash Out Refinance Mortgage. Here is how it works, if you have at least 20% equity in your home, you can take out an FHA mortgage that is larger than the current amount you owe on your home. 

The new loan payoffs off your current mortgage and the difference in money between the two loans will be given to you to use for whatever you would like. 

This is good for those who qualify for a few reasons. First, the cash money that comes straight to you that I spoke about earlier. Secondly, FHA homes normally have lower interest rates which is good for the homeowner. 

Lastly, FHA loans aren’t as rigid as those from other lenders, so even if your credit history has some blemishes on it, you can still get qualified for this mortgage.  

Now there are some minimum qualifications that have to be met, and this type of loan requires a monthly mortgage insurance payment for the life of the loan. 

There is some speculation in online searches banks aren’t spreading this news around, but that it is a real opportunity for homeowners. There seem to be several lenders in the marketplace for this loan. It will require some research on your part, but it could be worth it in the end.  

LOOK: Major US city skylines in photos, then and now

Stacker consulted photo archives and the Council on Tall Buildings and Urban Habitat to see how 15 U.S. city skylines evolved in the past century.

Gallery Credit: Stacker

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