Posted on: 15th Jan, 2010 02:32 pm
I originally refinanced my home and took cash out. The next time I refinanced, I only wanted a lower interest rate with no cash out but was told that because my original refi was a cash out, I had to take cash out again. Is that true? I want to refi now as my interest rate is 6.1% but really don't want to take cash out. It has been over 5 years since my last refi.
Hi CJC,
If you once did a cash-out refinance, it does not mean every time you refinance you will have to do cash-out. If you just want to lower your interest rate and do not want extra cash from the refinance, you should be able to do so. By the way, are you in Texas? If you are in Texas and the cash-out refinance was a Texas A6 refinance, you will have to refinance cash-out. This type of loans are regulated by the Texas Homestead Act, Article A, Section 6 rules.
If you once did a cash-out refinance, it does not mean every time you refinance you will have to do cash-out. If you just want to lower your interest rate and do not want extra cash from the refinance, you should be able to do so. By the way, are you in Texas? If you are in Texas and the cash-out refinance was a Texas A6 refinance, you will have to refinance cash-out. This type of loans are regulated by the Texas Homestead Act, Article A, Section 6 rules.
CJ
I think there may have been some mis-communication between yourself and the loan officer. Since your existing loan was a cash out, then your new loan will be priced as if it was a cash out even though you are not walking away with cash. Not all lenders do this but that is probably what is happening. You can either change lenders or prove that the money you cashed out was used towards the home.
I think there may have been some mis-communication between yourself and the loan officer. Since your existing loan was a cash out, then your new loan will be priced as if it was a cash out even though you are not walking away with cash. Not all lenders do this but that is probably what is happening. You can either change lenders or prove that the money you cashed out was used towards the home.
Fannie Mae and Freddie Mac condsider a loan a cash out refinance if the refinance is done within six months of a previous cash out refinance.
Your last refinance was way over 6 months ago, so, it is not a cash out refinance in most states (Can not speak for loans in Texas as their laws are unusual and unknown to me)
Your last refinance was way over 6 months ago, so, it is not a cash out refinance in most states (Can not speak for loans in Texas as their laws are unusual and unknown to me)
