Can a homeowner refinance their home for the remainder of it's value if they have already refinanced it for a large part of that value within the last 3-4 months. My girlfriend and i would like to take out the remainder of the homes value (approx $8000-$8500) for a very important school,but she just refinanced the house 3-4 months ago for a loan already and she was told by a friend of hers that she (the friend) didn't think it would be possible. The home was valued at approx 100k.
2006-08-04 20:09:39 · 5 answers · asked by termn8or3000 1 in Business & Finance ➔ Personal Finance
If it is not worth it to do the refinance for the $8000-$8500 then what or how, can or should,we go about trying to get this money for the school?(using the remaining balance of the house that is) if we are going to have to pay $3000-$4000 in closing costs then,obviously,it's not worth it for a net gain of only$4000-$4500 when we need as much of the $8000-$8500 as we can get. Thank you for any and all help
2006-08-05 11:43:49 · update #1
You might be able to, but for the amounts involved it doesn't appear that it would do any good. If she just refinanced, her credit score may have changed. Also, considering the new loan to value ratio, and PMI you might not be able to have a situation that merits a refinance. This is not a good idea.
2006-08-04 20:30:14 · answer #1 · answered by J. C. 6 · 0⤊ 0⤋
There should be no problem refinancing, just realize you'll end up paying $3000-4000 in fees again (and that could take from your cash-out).
My biggest concern is with your dollar figures. If I'm reading this right, the home is valued at app $100k and you owe about $92k (100-8=92). Most banks won't allow you to mortgage more than 80% of the home's value, so the chances of you being able to take out the $8000 are pretty slim, especially since you just refi'd 3 or 4 months ago (lenders will be suspicious of your motives). It MAY be possible to do a HELOC, but the rate will be variable and with rates going up, this may not be a good option.
If this is for education, can you take out a student loan? That will give you a lower rate, without the fees of the re-fi.
I guess what I'm trying to say is: I need more info.
BTW - you CAN do a cash-out re-fi in Texas (we considered it, but decided to go with the lower interest rate of a standard 15-year mortgage with no cash-out). The law was changed several years ago.
2006-08-05 10:27:33 · answer #2 · answered by homeschoolmom 5 · 0⤊ 0⤋
You will be allowed to refinance again, after you have made your first payment to the new lender (unless your property is located in the state of Texas--- State constitution will not allow cash-out refinances, or equity withdrawals to be done in this fashion). Be prepared to verify your mortgage though (it may be too new to show up on your credit report) Your new mortgage broker will want to see a recent mortgage coupon and the HUD-1 settlement statement from the last time your refinanced.
If you absolutely MUST get another loan, I recommend seeking a fixed rate second mortgage, or an equity line. Refinancing again will drain the equity right out from underneath you!
If this is not an option AND you have sufficient equity, you can still refinance your house (as long as you have made your first payment) but you will probably have to go to a new mortgage company. Mortgage brokers and lenders HATE when you refinance after a couple of months, because they don't maintain the servicing rights to your loan (which is a huge asset). And lenders don't get a chance to earn that much interest off of you.
If you go to the same company you got your last loan from, they probably wont do it for you- you will likely need to seek another company- Many mortgage brokers will have to forefit their commission if servicing rights to the loan are not retained for at least 6 months. I work for a major wholesale lender who currently practices this. I have gotten a couple of calls from livid mortgage brokers who were billed for their old commission checks.
Good luck to you!
10 Years Experience Wholesale Mortgage Lending
2006-08-05 03:27:39 · answer #3 · answered by User 3 · 0⤊ 0⤋
There is no state or fed law against it. It mostly depends on the contract you signed with the last one you refinanced with. It could be kind of spendy, depending on the fine print.
2006-08-05 03:15:09 · answer #4 · answered by Anonymous · 0⤊ 0⤋
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Good Luck!
2006-08-05 04:25:42 · answer #5 · answered by Anonymous · 0⤊ 0⤋