do we need to pay down payments , while refinancing a house
2007-09-05 09:20:54 · 8 answers · asked by NOOKI 1 in Business & Finance ➔ Renting & Real Estate
what do you mean 'down payments'?
you MUST pay the mortgage payments until the closing date.
second you can roll all of your closing costs into the equity.
FHA does cashout up to 95% loan to value.
You need to have equity or ....cant do it!
2007-09-05 10:08:35 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You always need to pay your creditors on time, especially during a refinance transaction. IF you need to pay down total DEBT in order to QUALIFY for the refinance that could also be true. Most lenders will require your TOTAL debt to income ratio to be UNDER 45%. IF your new mortgage payments plus your current bills are MORE than 45% you may need to consolidate some of that debt OR limit the loan amount to keep your ratios within program guidelines.
Not sure if that was part of your question or not, =)
2007-09-05 09:37:16 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Its a loan you are paying off, right? Why would they suspend your payment you owe just because it takes time for the refinancing to take affect?
Think of it this way. If you are a landlord and your renter decided not to pay you because they are in the process of moving out that month with no warning, you would not return their first and last.
2007-09-05 09:35:55 · answer #3 · answered by Anonymous · 0⤊ 1⤋
No you need a new mortgage in your name only and yes they will want money down, how much depends on what the current mortgage is and the assessed value of the house in today's market. If the house is assessed at 200k but your parents owe a mortgage of 250k then you would need 50k cash down payment plus closing costs of 6k
2016-04-03 05:09:28 · answer #4 · answered by ? 4 · 0⤊ 0⤋
No, but you may if you wish. The last time I refinanced, I bought down the principal by $5,000.00 since I had extra cash available.
2007-09-05 09:40:30 · answer #5 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Generally not. The down payment on a refinance is called "equity from subject property". All that means is your current equity acts as your down payment. If you have extra cash you're more than welcome to reduce your principal, but it's not required
2007-09-05 09:50:51 · answer #6 · answered by matzael 3 · 0⤊ 0⤋
Yes, otherwise the current lender will report the delinquent payments and it will screw up your credit.
2007-09-05 09:28:46 · answer #7 · answered by gambit0614 6 · 0⤊ 1⤋
you must make payments until the loan closes!
2007-09-05 09:34:46 · answer #8 · answered by Anonymous · 0⤊ 1⤋