What would you like to do?
How much equity would you need to refinance?
There is no requirement for the amount of equity in your home in order to refinance. You can get mortgages for 100% of the value of your home if you are willing to pay a higher interest rate. SOmetimes this makes sense if you really need the money and have no other source for the funds. The things to consider are how much of the total value of your house is your new loan amount going to be? In other words, are you trying to get a loan for more or less than 80% of the appraised value of your house? If it is more, a standard Fannie Mae loan would require you to carry PMI on the mortgage. Next would be closing costs and escrows. A refi could cost you many thousands of dollars depending on the value of your house and the amount of the mortgage. So when you are calculating the loan to value on the new mortgage, and you are planning to roll in the closing costs into the new loan, don't forget to include this amount. Another option would be a home equity line of credit. These loans can be obtained to 95% of 100% of the value of the house depending on your credit and income scenario. Answer Lenders typically require you to have a 90% loan-to-value ratio if you want to refinance. They also want to see that your home has increased in value. Most lenders won't refinance your home if it's significantly losing money.
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No. It is home equity line of credit that is secured by your home. You use it to buy things and if you buy too much and can't make the payments the bank can foreclose and ta…ke your home.
How do you know how much equity you have left if you refinance and take a home equity line of credit at the same time?
Answer . \nYou add the two loans together and subtract them from the appraised value of the\nhouse. This will give the dollar amount of equity left.\n. \nAdding the 2 lo…ans together and divide by the appraised value will give you\nthe percentage that is left.\n. \nYou should have received a copy of your appraisal at your closing.
If you bought a house last year and it has decreased 15k in value and you need to refinance next year because your interest rate will no longer be fixed how can you refinance with no equity?
It is possible to refinance "out of equity" and take a loan that is more than the home is worth in certain cases. I don't recommend this option. If you were forced to sell you…r home because your job is relocating you, or you can no longer afford the payments, you are then in a very bad position. In order to sell you will have to come to the closing table with money. The first thing I would do is contact your current company and see if they have a fixed rate conversion option without doing a full refinance. Some lenders will charge you a fee to convert an adjustable rate to a fixed rate. If they want you to refinance, you are better off shopping around. Your current mortgage company will not give you any breaks to refinance. The other option is to have an appraisal done closer to the time the adjustment will happen. You may be able to get a more favorable value. ---------------------------------------------------------------------------------------------- If you are in a situation where you have no equity there are still a select lenders that are financing 100% of the appraised value. I personally have two lenders that will lend 115% to an "A" paper borrower. Having negative equity is never a great thing to have, but if your back is against the wall and you plan on staying in the property for the long term, this may be the only feasable option. Having negative equity negates the detrement of missing a mortgage payment and having a poor credit history. If you credit is healthy now, and you plan on staying in the property for the long term, refinance as soon as possible. If you need to relocate due to job displacement, maybe consider using the property as a rental rather than selling. Use the money you would have brought to the settlement table to knock off your principal and get a good tenant in the building. Selling without equity should not be an option unless your in dire straits. Also, Finding an FHA approved lender will greaten your chances of being able to refinance. The new FHA "secure" that was implemented by George W Bush was implemented(pending Jan 2008) for home owners with little equity and adjustable rate mortgages that will expire. In this current mortgage market FHA is the only way to go to get a low equity or ARM fixed at a competive interest rate. Even if you miss a payment after the loan adjusts this will not be counted as long as the payment history prior to the rate adjustment is a 0x30 rating (No lates in 12-24 months) FHA would be you best option if you need to refinance.
Answer . No, this would be nearly impossible. Because the loan is in foreclosure, the homeowners' credit is typically very low, so they will not qualify for a traditional m…ortgage. Many lenders simply refuse to provide a new mortgage when the house is in foreclosure. The lenders that will provide a foreclosure bailout loan base their qualifications on the equity and income. Usually the home must be 65-70% loan-to-value (LTV) to qualify for a loan. Rates are typically high (11%-20% depending on the lender), and the homeowners will need to show enough income to qualify for such a payment.
Home equity loans don't cost you anything unless you use them and only what you use will be charged an interest rate, which is tax deductable. If you have a equity loan you ca…n get cash out at anytime. If your going to refinance a 1st or 2nd mortgage note, you can use that money for cash. Just remember that when you "get cash out" of your home the correct term is that you are borrowing money using your home as collateral. You are not really getting cash out of your home. It's coming from the bank and you may find yourself deeply in debt, unable to make your payments and the bank will take your home.
Answer . Refinance with a set rate is best. A home equity line of credit is very similar to a credit card. I don't know the specifics as to how interest is charged or at w…hat rate, but when you get approved for a certain amount of credit (let's say $10,000) It's very easy to use that money on things you may not need. For example, if you plan to spend $7,000 on improvements and get the refinance loan, then that is all you will spend. If you get the line of credit you might decide after the improvements are done that you want to buy a $2,000 pool table, and you know you have that credit available so you use it. Now you will be paying for that pool table for 15-30 years, depending on the length of your loan. Things like that are much better handled with a short term loan.
Answer . You typicaly can't refinance without any source of income. Lenders will bot borrow to those who dont have the capacity to repay the debt.
No you are not likely to be able to refinance a home with no equity. Unfortunately, this is exactly the situation that homeowners are finding themselves in right now leaving t…hem with many less options when facing the current difficult mortgage market. It is probably best to try to renegotiate with your current lender if you find yourself in such a situation. More lenders are beginning to be forced to consider this for their customers.
It's unlikely you can either refinance or get a home equity loan (which requires payments!), because the potential lender wants some certainty you will be able to repay the lo…an. Emergency loans for unemployed is specifically meant for this very purpose, using this option you can easily pay for most of your essential requirements for which you are facing difficulty due to non availability of required funds.
If you have a 1st mortgage you can roll the two together into one low rate....like 30 yrs at 4.5% with no money down depending on your value of your property....but you can as…k the bank to get you to just refinance your home equity loan just the same. You will probably get a low rate like 10 yrs at 3.6% with a good FICO score! I just did it through Sun National Bank in Old bridge, NJ, they were great and no hidden fees.....the mortgage rep was fantasic and was available to come to my house to discuss or pick up any paperwork and avail on his cell anytime! I highly recommend you try them first. They will also take over the phone applications!
If I currently don't pay PMI but refinance and my home value has decreased to having less than 20 percent equity would I now have to pay PMI if I refinance?
Yes you will.
No, you should keep the equity in your home
It may be possible to refinance your home if you do not have equity. I have done many of these loans. There are currently programs for both Freddie Mac and Fannie Mae that wil…l allow you to refinance even if there is not equity. There are Loan to Value limits, but they are well over 100%.
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Home equity loans enablehomeowners to get cash out of the equity in their home. As Homeowners pay downtheir mortgage, they build equity; equity is also built as a home's value…increases. In order to qualify, most lenders require at least 20 percent equityin your home.
At times yes. The new HARP program currently allows refinances on properties up to 125% of their value. After March of 2012 once FNMA and Freddie Mac have updated their automa…ted underwriting engines, lenders may go above and beyond 125%. Each lender may put their own additional rules on top of these rules too. Depending on the lender, your loan must be owned by FNMA or Freddie Mac to be eligible for HARP. Call your lender and ask who owns your loan or use the FNMA look up tool on-line. If your loan is owned by Freddie Mac, it also has it's own look up tool, it's harder finding a HARP lender. As always there are criteria to be eligible for HARP and if you have a second mortgage or HELOC, they have to be receptive to the HARP program too. Best of luck to you.
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