re-fi mortgage question

All debt is considered when getting a mortgage. This is true whether you are pucrchasing or refinancing. With the equity that you are showing, you can do a debt consolidation refi and as long as the pay offs are made out to the paid off creditor by the closing agent, it will normally be treated as a RT refi.

Hope this helps.

fla-tan

 

sorry George. RT stands for Rate/Term and is looked at diferently from a CO or Cash Out refinance.

Hope this clears it for you.

fla-tan

 

George, I can confirm what fla-tan is saying about the RT re-fi vs. Consolidation. I helped a friend last week on this, he had a hard time getting approved for a RT re-fi, but when he opted to get a debt consolidation re-fi he was approved right away. The outstanding CC debt was only about 11,000, his previous mortgage rate was 7.99% approved for 6% fixed at 70% equity. Hope this helps

 

As long as you receive no more than $1000 when refinancing, it is considered a R/T refinance. If you want to do a debt consolidation refiance, it is still considered as a R/T as long as the debts are paid directly to the debts at closing. In other sords, the title agent that handles the closing also sends the payoffs to whichever debts are being consolidated.

Hope this helps

fla-tan

 

George as long as you keep the LTV at or under 80% there is no PMI on conventional mortgages.

Good luck

fla-tan

 

But the documentation at the link below doesn't mention credit cards in "no cash-out" and "limited cash-out" refinances. It mentions credit card balances in the "cash-out" section.

http://www.efanniemae.com/singlefamily/pdf/GTU_699.pdf

 

George

Fannie Mae guidelines are nothing but guidelines, but are not the endall and beall for the conventional mortgage business. As I stated before, as long as the borrower receives less than $1000 at closing, conventional lenders will consider it a R/T refinance.

fla-tan

 

Thanks for your reply.

Who is beating the deals on loans qualified for Fannie Mae or Freddie Mac purchase?

What is your definition of "conventional" if not one using the Fannie Mae or Freddie Mac guidelines and written on the Fixed Rate Multi-State Note that is a national standard? What are the contract terms of the one you're talking about? Is there a prepayment penalty? And what's the rate and discount for a 30-year fixed rate $100,000 loan for the loan you're talking about? What is the name of the lender giving away that kind of money?

Please, be specific-- as in the specificity about the $1000 cash-out limit.

George, what are the details of the loan you require: Amount, value of the property, balances?

Did you talk to a mortgage lender or broker, yet?

 

George refi's can be done in as little as 2 weeks, if everything falls into place, though most will take around 3-4 weeks. There are lenders who can do them quicker, but they are usually the ones that you want to avoid as they charge the high rates and fees. If you wish, you can email me off-board and I will try to help you further.

fla-tan