Cash-out/ Re-fi

[Brandon Sturgill]

Can someone please provide some education/ direction to resources on this topic. Seems like a simple concept but I am getting lost in the details...much obliged. 

[Jon Holdman]

Your second post seems completely unrelated to the first.  So I suspect you have more questions in mind.

First topic:  

If you own a property and you get a new loan on it then you're doing a refinance loan.  Doesn't matter if there is an existing loan or not.  The distinction is that you already own it rather than a "purchase money mortgage" which is used to acquire a property.

If you do the refinance you might be just paying off an existing loan.  That's a "rate and term refi".  Or, if you actually get a check out of the refinance its a "cash out" refi.  You might do a cash out refi to get cash to use for some other purpose.

Second topic:

If a seller sells you a free and clear property and holds a loan to you for part or all of the purchase you've just done a straight owner carried deal.  This works exactly like buying a property with a mortgage.  You get a deed and are now the owner.  Someone lends you money and you give them a deed of trust or mortgage on the property.  That gives them a security interest.  That is, the ability to foreclose if you don't make the payments.  The difference between a seller carried mortgage and one from a bank is simply who's making the loan.

There are other forms of seller financing, though, where the title is not transferred.  A "land contract" aka "contract for deed" works like a car loan.  You get possession but not ownership (i.e., "the deed").  You don't get ownership until you finish the contract.

Another form of seller financing is a lease/option.  The lease gives you possession and the option gives you the right to buy.