Posted: Mon Sep 12, 2005 9:29 pm Post subject: RE:
Hi Rosane,
Welcome to the forums.
The various options in cash out refinance are 30 Year Fixed Rate Mortgage cash out refinance, 5 Year Interest-only ARM cash out refinance and 6 Month Libor cash out refinance.
We shall provide you with some details on these loan programs.
30 Year Fixed Rate Mortgage cash out refinance:
These loans are offered at low interest rates and their repayment period is about 30 years. Since the rates are low and fixed over the loan period, hence the borrower can pay off the loan with low monthly payments. This helps him to save cash for other expenses.
5 Year Interest-only ARM cash out refinance:
These mortgages have fixed rates for the first 5 years of the loan period and adjustable rates every year for the rest of the loan term, that is, 6 to 30 years. These loans allow for flexibility in monthly payments and paying the principal during the interest only period is optional. These loans do not require pre-payment penalty.
6 Month Libor cash out refinance:
These are similar to interest only mortgages. The interest rate on these loans is a sum of the Libor index plus a margin of one-eighth of one percentage point (1 point = 1% of the loan amount), that is, 0.125%. This margin does not change throughout the loan term. The index value is adjusted after every 6 months. Generally, these programs are applicable for 25 years with an interest only period of 10 years. These loans do not require prepayment penalty. A 5% down payment is required to obtain these loans. These mortgages are offered to those with less credit.
Hope this information will fulfill your requirements.
Posted: Tue Sep 13, 2005 11:17 pm Post subject: RE: Cash-out Refinance vs Home Equity loan
Hi Mike.D
Welcome to MortgageFit forum.
A cash-out refinance loan and home equity loan differ from each other in some aspects. A cash-out refinance is a replacement of your existing mortgage. It is a home loan having an amount greater than the loan balance of your existing mortgage. Such loans are secured by the same property that is mortgaged previously.
On the other hand, a home equity loan is a kind of second mortgage that is taken by keeping the home equity as the security for the loan. Moreover, the interest rate on a cash out-refinance loan is usually lower than that of the home equity loan.
Further, when you refinance your existing mortgage, you are required to pay the closing costs which are quite minimal in case of home equity loan.
Whether you will take a cash-out refinance loan or a home equity loan, depends on your purpose. If you want to refinance your existing mortgage as well as make home improvements, it is better to go for cash-out refinance loan. But if you want to consolidate your debts or make home repairs, you can take a home equity loan.
Posted: Sat Mar 15, 2008 12:16 pm Post subject: information on closing
I'm trying to refinance to cash out. Our mortgae boker wants us to sign the same paper we will at closing now, then he said that it as to have a three day hold ( something like a resining period, then go to processing, then do something else, and then actually close a week and half after sign the first set of paper. And we won't get our check for cash out for a day or to after closing. We have done this before, but it didn't work this way, we signed a mortgage application, a lock in and then just signed papers at closing and recieved our check then, and also were told that we had 3 days to resined, but this guy is not saying this. Does this sound strange
A similar query has been answered at http://www.mortgagefit.com/refinance/cashout-closing.html . Please have a look at what the community members have said. _________________ Procrastination is the enemy of your financial sucess
Posted: Mon Mar 17, 2008 7:11 am Post subject: Reply to Wendy
By law on a refinance of your primary residence you have a three day right of recission, meaning that once you go to closing you must wait three business days ( including Saturday as a recission day you just can not fund on Saturday) before funds can be disburse to you.
It sounds as if everything is on the up and up I can recommend you review your documents during this time and make sure everything that was initially disclosed is still correct, Review your TIL ( Truth in lending) for your APR and any pre-payment penalties. Good luck !! _________________ Len Zangwill
Sr. Loan Officer
Countryside Mortgage Company
www.countrysidelending.com
Direct# 267-263-3146
Cell# 215-701-9057
We guarantee our rate and fees in writing !!
Sara,
This only applies to the refinancing of your primary residence. 2nd home or investment properties will fund the same day you sign your documents.
Does not apply in a purchase transaction. _________________ Len Zangwill
Sr. Loan Officer
Countryside Mortgage Company
www.countrysidelending.com
Direct# 267-263-3146
Cell# 215-701-9057
We guarantee our rate and fees in writing !!
Conventional loans allow cashout refinancing up to 90% of the loan to value.
FHA allows up to 95% loan to value.
VA allows up to 90% loan to value.
FHA has really low rates, so it maybe worthwhile to look at it.
Ask your current lender if they offer FHA loans.
The rates maybe lower than your current mortgage, and definitely lower than the 2nd mortgage rates. _________________ Current Mortgage Rates FHA Mortgage Loans Home Mortgages in North Carolina
funds for purchase transactions are disbursed on the same day. if there is someone out there holding funds, it is outrageous.
the biggest difference between cash-out refinances and home equity loans these days is that a large number of lenders has retreated from the home equity business. _________________ George M. Akerley
Senior Loan Officer
Freedom Mortgage Corporation
37 Jerome Avenue
Bloomfield, CT 06002
860-286-0444
Caron
