Refinancing mortgage questions - few important refinance facts
Before you start asking yourself a question, should I refinance my mortgage, you should see if you qualify. Besides paying closing costs, worrying about locking the interest rate and so on, check three following questions -
1. How much equity do I need for a mortgage refinance?
Refinancing a mortgage requires 10% equity in your home, at the very least. Some lenders may agree to modify your loan even if you have less than 10% equity.
2. Can I consolidate my first and second mortgages, either, equity line or equity loan when I refinance?
If it has been at least 12 months since you closed on the second mortgage or made a withdrawal on an equity line and still have 10% equity in the home, you may be able to combine the first and second. Certain banks may still consolidate the two loans of the current customers with less than 10% equity in the home. At the very minimum, you must have paid on time within last 12 months
3. Can I refinance if my home is currently for sale?
If you are selling by owner, just remove the sign once applied until the closing. If you list the house on Multiple Listing Service (MLS) with realtor, you must take the house of the market. You can only refinance once your home has not been for sale within the last 6 months. Lenders will likely ask you to write a letter of explanation.
Tue Feb 3, 2009 12:02AM | Copyright: www.bad-credit-advisor.com | More in Mortgage | Comments (0)
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