Advantages and disadvantages out of FHA Dollars-Out Refinance Loans The latest $200,100000 mortgage will pay off of the $150,100000 left toward old you to definitely, leaving to you $fifty,100 during the bucks. Like other mortgage loans, FHA finance provides settlement costs, which will lose the amount of money you’re taking from him or her. When the, such, your own will cost you equivalent the median to own FHA finance ($6,868), you’ll be leftover which have $43,132. Before applying to own an enthusiastic FHA dollars-aside refinance mortgage, you’ll want to very carefully take into account the prospective gurus and you may risks compared together with other means of borrowing from the bank. Low interest rates. FHA fund generally have suprisingly low interest levels (regarding 5% by )pared with other forms of debt, for example signature loans or credit cards, that renders her or him a cheap answer to borrow. Reduced credit score minimums. FHA loans are apt to have all the way down credit history minimums than of numerous other designs of borrowing do. You can qualify for financing having a rating just like the lowest just like the five hundred. Big mortgage number. While borrowing up against your own home’s equity, you can buy extra money that have a funds-away re-finance than you may have the ability to see compliment of good consumer loan otherwise line of credit.