My ex-husband and I are both co-borrowers on a mortgage. I want to re-finance the mortgage in my name only (I have excellent credit with a good debt-to-income ratio, so this shouldn't be a problem as far as my credit is concerned). I would like to re-finance for about $15,000 more than my current mortgage, so I can use the extra funds to "buy him out" of the mortgage. He has agreed to this. We currently have $40,000 in equity. Do mortgage companies allow you to have a higher mortgage and "cash out" the remaining funds (in this case roughly $15,000)?
2006-09-07 03:26:19 · 7 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Yes, it would be considered a cash-out refinance. Let's say your current mortgage liens are $300,000, and your home is worth $400,000. You would have a loan-to-value of 75%, and that leaves room to lend an additional 25%.
You only need $15,000, so you can either refinance your existing $300,000 loan by opening a new mortgage at $320,000 ( a bit extra to cover associated costs and fees), or simply add a home equity line behind your existing mortgage to get the cash-out.
Either way, it's perfectly feasible and common practice.
http://www.thetruthaboutmortgage.com
2006-09-07 11:37:44 · answer #1 · answered by Anonymous · 0⤊ 0⤋
As long as you can afford the payments, yes. It may be a better idea to take out a Home Equity Loan rather than refinancing your existing loan cash out like you are proposing, especially if you've got a rate from when they were low in 2003-2004. Yeah, the rate will be higher, but you're not paying a higher rate on your entire balance.
2006-09-07 13:59:22 · answer #2 · answered by Searchlight Crusade 5 · 0⤊ 0⤋
The product you are seeking is called a cash out refinance and yes, as long as there is sufficient equity in the property and you can qualify for the payments, this is a common practice.
I'd be happy to help you investigate your options at no cost and with no commitment
Nlabonte@firsthorizon.com
2006-09-07 10:30:40 · answer #3 · answered by mazziatplay 5 · 0⤊ 0⤋
Of course they do. As long as you meet the credit & income requirements & the loan to value is below a stated maximum amount for a given loan product.
Be aware however, cash out re-fis carry a higher rate that do straight re-fis.
2006-09-07 10:31:35 · answer #4 · answered by Homer J. Simpson 6 · 0⤊ 0⤋
Yes you can and that is an exellent Idea. Just shop around for the best rates and deal. It shouldn't take you long. Just make sure the new mortgage has only you on it.
2006-09-07 10:50:09 · answer #5 · answered by wolfy1 4 · 0⤊ 0⤋
as long as you have equity. shop around.
2006-09-10 09:48:59 · answer #6 · answered by bidia 3 · 0⤊ 0⤋
2006-09-07 12:05:09 · answer #7 · answered by Anonymous · 0⤊ 0⤋