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States and even lenders may have their own tangible net benefit requirements like the government, which has strict requirements around showing a net tangible benefit for the loans they back.<\/p>\n
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Based on the state and the lender the specifics of the rule will vary, but they\u2019re going to revolve around one of several factors:<\/p>\n
\n- Saving money on a payment: By a lower monthly mortgage payment or savings gained through debt consolidation.<\/li>\n<\/ul>\n
\n- Shorter term: When you go for a shorter term you can save money on interest even at an equal rate.<\/li>\n<\/ul>\n
\n- Lower rate: A lower rate would mean less interest to be paid.<\/li>\n<\/ul>\n
\n- Elimination of mortgage insurance payments: Eliminating mortgage insurance payments will result in significant monthly savings.<\/li>\n<\/ul>\n
Taking cash out: When you take cash out it allows you to use the existing equity in your home for other purposes, like building a college fund, saving for retirement, or home maintenance.<\/span><\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t