When can a new homebuyer refinance?

Question

Bought home in April 2006
When can I refinance to-
1.combine mortgage 1+2
2.Get cash out to do home improvements?
I bought the house well under market value but with no cash down
P.S. I only want ONE mortgage payment, hence the reason I did not take out a home equity loan or line of credit

Answer 1

It's not a matter of how long you've owned your home, it's a matter of rental or mortgage history. If you have 12 months (in most cases, sometimes it can be as far back as 36 months) of rental or mortgage history, then I can refinance you RIGHT NOW.

Nicholas M has the right of most of it though, although I work with several lenders that will, if your credit is in good enough condition, do 100% financing on a single loan.

As for the prepayment penalty, if your state has one and you accepted it, or if it's a Federal bank you did business with, sometimes it's more beneficial to pay the penalty and have a lower interest rate and payment than it is to stay in a loan that you're going to pay more for.

It's a good idea to get out of your second mortgage, as those rates are generally adjustable, and set at higher interest rates.The mortgage insurance he writes about has just become tax deductible recently, so it's better to have that rather than a high adjustable interest rate.

If you want to discuss options, email me, or check out our website. The consultation is at no charge to you, not even for a credit report.

[e-mail]

Answer 2

You have to read the documents given to you at settlement. Check to see if there is a loan pre-payment penalty. Irregardless, most mortgage companies will not refinance your loan for 12 months (a seasoning period on the old loan). Either way most likely you will find that the mortgage rates have not gone down enough to justify a refinance. There are a lot of fees associated with a refinance even the "no-closing-cost" refinances have costs associated with them.

I suggest you look into a second mortgage. Also you stated you purchased the home "under market value." But the actual definition of market value is the price a person would pay for the home so you have basically just reset the market value for the home. Appraisers are much more cautious with the current state of the real estate market.

One note of caution with taking out a second mortgage. If the market continues to decline and your appraisal drops you will not be able to refinance your first mortgage unless the value of both loans is less than the appraised value. I have heard of cases where a person takes out a second mortgage and later wants to combine the loans but because of a declining real estate market the combination of their loans now exceeds the appraised value. Something to think about since your first mortgage is a zero down.

Good luck

Answer 3

Fact is you can refi one day after purchase. Of course examine if you have a prepay penalty on your loan.

Also if you can verify full documentation (income & assets and the debt ratio works out) and are eligle for conforming loans (no bk's or major adverse credit in the last two yrs) then you can generally take cash out (including pd off debt/cash in hand other than the mortgage in the new loan) you can usually get 90% financing with one loan (will have Mortgage insurance on the new loan). If your credit is really good you might be able to get a little higher cashout with an alt doc program.

Fannie Mae and Freddie Mac have no seasoning restrictions, an alt program will probably have 6-12 months.

Answer 4

Most mortgage companies have a five year pre-emption clause resulting in you not being able to redeem the mortgage until after that time. You can refinance at any time but the costs involved will not make it financially viable for about 2 years

Answer 5

United Home Funding can refinance you quickly at a great rate. They have an alliance with my company, TOTAL DEBT SOLUTIONS which can also settle out any credit card debt that you might care to roll into the loan. Call me today at 419-3660-1404 to get an application started.

Answer 6

You can't re-fi until the pre-payment penalty time is up. Otherwise you loose a bunch of money. Check your mortgage documents.

Answer 7

I can have you refinanced at very good rates .

Get it refinanced man !!!!
If you have a good or so so credit history then i can find you very good deals at about the higher fves and lower sixes .As the interest rates are low now it will be the perfect opportunity for you to get the refinance done .........

For more information write to me at [e-mail] or call me at 480.751.4125 .


regards,
kish

Answer 8

you can do it any time - you just need a bank to lend you the money - but make sure you dont have a prepayment clause on your first mortgage (sometimes they are up to 2 yrs)

Answer 9

I did this a couple of years ago. I've used Ameriquest before, but am much happier with Countrywide; there were no surprises.

You can try lowermybills.com as well...

Answer 10

http://www.refinancing.com
http://www.refinancingcompanies.com