Mortgage Refinance Guidelines And Top Reasons And Benefits

Gustan Cho Associates
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Mortgage Refinance Guidelines And Top Reasons And Benefits

This BLOG On Mortgage Refinance Guidelines And Top Reasons And Benefits Was UPDATED On May 29th, 2019

There are other reasons why homeowners need refinancing on their current mortgage loan besides just refinancing. Most may refinance so they can have a lower interest rate and save money.

  • Although the main reason is to refinance current high interest mortgage into a lower interest mortgage loan, some homeowners need to refinance their mortgage loans for other reasons
  • Here are some typical reasons why homeowners refinance their mortgages:
    • get a non-occupant co-borrower out of the mortgage note
    • get an ex-spouse off the note of the mortgage loan due to a divorce
    • change loan programs such as FHA loan into conventional loan
    • many homeowners may have higher interest non-qm loans and need to refinance to lower rate traditional mortgage
    • do a cash-out refinance loan

FHA And VA Streamline Mortgage Refinance Guidelines

Homeowners who currently have a VA or FHA loan and had it for at least six months, they can qualify for a VA or FHA streamline refinance mortgage where no appraisal is required, no income verification is required, and no credit score is required.

  • This special program is offered by Gustan Cho and his Associates for mortgage loan borrowers in most of the 50 states
  • All closing costs can be rolled into new VA and/or FHA streamline refinance mortgage loan
  • Homeowners can have had recent late payments and derogatory credit in the past 12 months and will still get approved
  • The only requirement is borrowers need to have been timely on their VA and/or FHA mortgage payment for the past 12 months
  • No late payments with housing payment
  • One 30-day late payment in the past 12 months is allowed
Mortgage Refinance Guidelines
Gustan Cho Associates Mortgage News

Mortgage Refinance Guidelines FHA To Conventional Loan

Real estate prices have literally skyrocketed in Illinois, Florida, California, Washington, Georgia, Texas, Michigan, Oregon, North Carolina, South Carolina, D.C., Oregon, Arizona, Oklahoma, Kansas, Alabama, Colorado, Ohio, Mississippi, Arkansas, New Mexico, Minnesota, Kentucky, Tennessee, Nevada, New Jersey, Pennsylvania, Indiana, and Washington as well as the rest of the country.

  • For example, a client just called me last week wanting
  • Wanted to see if it would make sense for him to refinance his Florida home that he purchased last year for $171,000 with an FHA Loan
  • After researching comparable properties in his area, similar and like properties are now selling for $250,000
  • This homeowner can qualify for an 80% loan to value conventional loan
  • Doing so borrowers not only get cash back at closing but he now does not need to pay the hefty monthly FHA mortgage insurance premium
  • FHA requires lifetime FHA MIP for the term of the FHA Loans
  • Conventional Loans does not require any private mortgage insurance on loan to value at 80% or under
  • After he refinances his current FHA Loan to a Conventional Loan, the homeowner will no longer have to pay private mortgage insurance
  • There are hundreds and thousands of homeowners who have recently purchased their homes in the past few years with an FHA Loan
  • They often do not realize how much their home prices appreciated
  • They can refinance their current FHA Loan to a Conventional Loan
  • By doing so they can avoid paying the hefty FHA monthly mortgage insurance premium
  • Home values in California have had double-digit appreciation year after year since 2010

Cash Out Refinance Mortgage Guidelines

Due to the spike and consistent appreciation of real estate prices in most of the United States, many homeowners are taking advantage of the double-digit annual appreciation of their homes by refinancing their homes and doing a cash-out refinance mortgage.

  • Homeowners can do a cash-out refinance mortgage on home six months after purchasing a home with a conventional loan
  • The maximum loan to value allowed on a cash-out conventional loan refinance mortgage loan is 80% LTV
  • With FHA loan, homeowners can do a rate and term refinance mortgage six months after a home purchase
  • Homeowners need to wait 12 months after the home purchase to do a cash-out FHA refinance mortgage loan
  • The maximum loan to value on a cash-out refinance mortgage loan is 85%
  • The U.S. Department Of Veteran Affairs (VA) allows up to 100% LTV cash-out refinance loans
Gustan Cho Associates
Gustan Cho Associates

Taking Out Co-Borrower Refinance Mortgage Guidelines

Borrowers with non-occupant co-borrowers can refinance their mortgage and drop non-occupant co-borrowers. Homeowners who have an ex-spouse on a mortgage can also refinance their home loans and remove ex-spouse from the mortgage note. There are many instances where ex-spouse demands to have his or her name off the mortgage note. The simple solution is by refinancing current mortgage loan into a new mortgage loan relieving the co-borrower or other borrowers of the new mortgage note.

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