My husband and I just had a home built and we have already aprox 60,000.00 in equity in the home due to builder incentive upgrades. I would like to get some additional work done to the home so I was wondering what is the best way to go either refinancing or home equity.
2007-01-22 06:19:08 · 6 answers · asked by TM W 1 in Business & Finance ➔ Renting & Real Estate
Some points:
1. Time required before refinancing depends on the individual lender's guidelines. Many lenders will require at least a few months of seasoning in order to do a cash-out refinance.
2. A home equity mortgage (standalone second) allows you to get cash-out while leaving your primary mortgage alone. Closing costs are lower, BUT the rates are higher for second mortgages.
3. A home equity line of credit (HELOC) will allow you to draw down money over time, as opposed to a single, lump sum. A HELOC can be fixed or adjustable, but the rates are relatively high (as compared to a first mortgage)
Here are a few things to consider:
1. If you have a great rate on your first mortgage, you may consider getting a second mortgage and leaving the first alone.
2. If your rate is somewhat high on your first mortgage, it may, depending on your LTV, make sense to refinance. The savings can more than make up for any higher closing costs.
2007-01-23 14:32:58 · answer #1 · answered by robert_byrne 2 · 0⤊ 0⤋
You can refinance as soon as you like. I actually met a woman on Yahoo that I am in the process of refinancing even though she bought her 2 unit building about 60 days ago. She got ripped off by a chop shop broker house. If you think you got a bad deal it isn't a bad idea to have someone else look at it. Rates have dropped a bit since you got your loan but not enough so that you would notice a difference unless your place was 200k+ to refi based on that alone. For the woman I'm talking about I didn't charge her any points or fees only $399 to order the appraisal came out of her pocket on a loan with no money down. I ended up saving her like $243 a month on 2 fully amortizing loans. I don't say this as an advertisement for myself, just to let you know that there are options out there. And it never hurts to look around. If you have any more questions feel free to email me. I'm always willing to talk shop.
2016-05-23 22:04:26 · answer #2 · answered by Anonymous · 0⤊ 0⤋
There are many banks that do not have a seasoning requirement for refinancing. And you are much better off refinancing than taking a Line of Credit as those rates are typically adjustable and much higher. It mostly depends on the terms you have on your existing mortgage though and what you would qualify for in a new refinance loan. If you can get an equal or lower rate on the refinance, it is definately in your best interest to do so. If the rate would be higher- then you are probably better off taking out a LOC. I can help you out with this and am licensed in 48 states if needed.
2007-01-22 06:45:24 · answer #3 · answered by flamingojohn 4 · 0⤊ 0⤋
You can refinance immediately after purchasing a home assuming there is no penalties listed in your current mortgage contract (prepayment penalties, etc.). Make sure to take in to account fees, which can be quite sizeable. You may want to look into a home equity instead if you can handle both loan payments. The closing fees will be less because the loan amount is less and you can often get favorable rates from credit unions. Good Luck and Congrats on the new place!!!
2007-01-22 06:24:39 · answer #4 · answered by Helper 4 · 0⤊ 0⤋
You can re-finance immediately assuming that you can find a willing mortgage company and that your current loan does not have any clauses that prevent you from early payoff for a certain period of time.
2007-01-22 06:25:06 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Immediately under any fannie mae program. What state are you in? I can help you depending on the state.
2007-01-22 06:23:49 · answer #6 · answered by David R 1 · 0⤊ 0⤋