Cashing out, if it makes sense to you, would seem like a reasonable thing to do. It looks like you're making a good move - adding another year isn't a major situation, and you're reducing your interest rate by over 1.5% - worth it. The costs don't seem to be out of whack, either; presumably, there's nothing being hidden from you at this point (not likely with the disclosure laws currently in place).
is it true that if v refinance for EXACTLY the same amount as of current loan, appraisal is not required...
If you are refinancing within a short period after you purchase, the lender will use the original purchase price. On FHA loans, there are no appraisal refinances. Keep in mind when a broker asks you to take out cash, it is to increase the loan amount, yielding more profit for the originator. Many people lost their homes because they got addicted to cashing out. They would payoff their debt, then in 12 mos, all the debt is back, and you have a larger mortgage. If you want cash out and use it for the right reasons, you should be the one to request cash out, not your lender or broker.
Chris, unless there's been a major change in FNMA and FHLMC guidelines that slipped by me, no conventional lender is going to use purchase price on a new refinance. Need I add, "especially with a cash-out"?
Not everyone is qualified for an FHA streamline, of course.
Your reasoning on the cash out situation is right on, of course. Though we don't know the circumstances here, this one may be a case in which the broker/loan officer is merely making the suggestion based on what may be an increased home value relative to when it was purchased.
I will agree that greedy people will suggest cashing out to a potential borrower in an effort to pad their own pockets, but I also believe that it can often be a reasonable service to point out that a borrower might wish to obtain cash - he might not know about it otherwise.
Not everyone is qualified for an FHA streamline, of course.
Your reasoning on the cash out situation is right on, of course. Though we don't know the circumstances here, this one may be a case in which the broker/loan officer is merely making the suggestion based on what may be an increased home value relative to when it was purchased.
I will agree that greedy people will suggest cashing out to a potential borrower in an effort to pad their own pockets, but I also believe that it can often be a reasonable service to point out that a borrower might wish to obtain cash - he might not know about it otherwise.
If the home was purchased withing 6 mos, original value is used.
Who's doing this?
the broker is pushing for cash out as i mentionred that i need to get a window replaced and he thought its better to get them all done...thanks for reverting as i need to decide soon within a day or 2
v originally bought in 2005 and have never refinanced - may do it now but will streamlining no appriasal; will work for me or no.
bank with lockin is provident funding
v originally bought in 2005 and have never refinanced - may do it now but will streamlining no appriasal; will work for me or no.
bank with lockin is provident funding
I'm not quite sure I received all that information there, Guest. Your plan is to take the cash out and do the windows?
yes orinially but now, i am sticking to orignal loan amount with no cash out. my broker is saying v can't streamline???
i have regular fixed rate loan now and that's what i wish to refinance. is appraisal required???
i have regular fixed rate loan now and that's what i wish to refinance. is appraisal required???
Hi Guest!
Welcome to forums!
You will have to appraise the property if you want to get a mortgage refinance. Unless there is a property appraisal, it won't be possible for the lender to find out whether or not there is any equity in the property.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You will have to appraise the property if you want to get a mortgage refinance. Unless there is a property appraisal, it won't be possible for the lender to find out whether or not there is any equity in the property.
Feel free to ask if you've further queries.
Sussane
Thanks for the update; and I concur with Sussane - an appraisal is definitely needed.
so we did the refinance settlement yesterday...am nervous. a settlement specialist came from title company andshe said she was an attorney(when v asked that v had paid $200 dollars for that)
v paid all closing plus escrow funds from pocket (escrow refgund would come back within couple of weeks)
what i am not clear - the truth in lending figures do not match the hud. v locked at 3.875%-3.99 apr and ended up commiting at 3.875 but 4.136 apr
-the lady said it doesntruth in lending and apr doesn't matter as v r paying from pocket the closing etc. this would have applied - apr if v were rolling in the closing or doing cash out
does it make sense. v have 4 days to cancel if need be - and also loan amount on truth in lending was different from loan amount on the note
they said note is what is important, nothing else...any clarification would be helpful - as u can c, i can't sleep
v paid all closing plus escrow funds from pocket (escrow refgund would come back within couple of weeks)
what i am not clear - the truth in lending figures do not match the hud. v locked at 3.875%-3.99 apr and ended up commiting at 3.875 but 4.136 apr
-the lady said it doesntruth in lending and apr doesn't matter as v r paying from pocket the closing etc. this would have applied - apr if v were rolling in the closing or doing cash out
does it make sense. v have 4 days to cancel if need be - and also loan amount on truth in lending was different from loan amount on the note
they said note is what is important, nothing else...any clarification would be helpful - as u can c, i can't sleep
You can always ask the lender for clarification. If you're not satisfied with what the lender says, you can call off the deal.