Napa's Loan Ranger Chris Salese: Cash back, cash out, cash crazy
Loan Ranger

Napa's Loan Ranger Chris Salese: Cash back, cash out, cash crazy


There are plenty of words that can make you smile. However, for some reason, not quite like the word “cash.”

It doesn’t matter if you are giving cash or receiving cash, the feeling you get either way is one of pure satisfaction, especially if you are giving it out of generosity. This feeling is almost as universal as the currency itself, which is amazing.

According to numerous dictionaries, ‘cash’ is defined as ready money. It’s like a medley of different bank bills or a ratatouille of various coins. Even the straps and paper that hold the notes and coins together are impressive.

Typically, cash comes in diverse amounts, shapes, color and size. It could also be digitized, but that’s a completely different type of smile you might elicit.

Cash just seems to continue to have a unique voice and few boundaries, despite our electronic world today. Maybe it’s a changing voice, yet nonetheless, still a voice that comes through in different ways.

For example, cash back at closing can mean that you received a refund of any monies you invested toward, let’s say, the purchase of a new home.

This is typically the result of your lender over-estimating costs or fees involved in your transaction. It might indicate that you sent in more than the required funds needed to close as well.

Either way, getting cash back in this scenario feels great. Although this refund is usually not in the form of cash in hand, instead it’s a cashier’s check, which is close enough.

If you are the seller, then you might opt for a bank wire over a cashier’s check, assuming you are expecting a large amount of net cash proceeds.

Another common practice these days is to take cash out of your home.

This is when you refinance your home and pull out equity or money from it. You are not actually loading up your car with straps or bundles of cash and driving it to the bank. But you are certainly doing the equivalent electronically with bank wires.

Due to the enormous amount of equity that has been built up in a lot of homes over the last five to 10 years, you may be one of the fortunate homeowners to be eligible for a ridiculous amount of cash out for pretty much whatever it is that you want to do with it on the condition you can qualify for it.

So, is this cash craziness almost over?

The FHA says it could be soon. Their recent announcement, which goes into effect on Sept. 1, reduces the total loan to value ratio for borrowers who want to use an FHA insured loan to access cash from their home.

The FHA last adjusted this guideline in 2009 in response to the weakening housing industry and now they want to “stay ahead of any potential future shift in the housing market.”

Chris Salese can be reached at or 707-363-4439. He is a licensed California mortgage lender (LO NMLS #254469 — CA-DBO #254469 Corp NMLS #1850 Equal Housing Opportunity.

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