Am I eligible if there is a lien on property?

Generally, you should pay off the lien and then refinance. But depending upon the situation, you may be able to file suit to have the lien removed.

What is Seasoning?

Lenders often require you to make payments on an existing mortgage for at least 12 months before allowing you to refinance. This is known as Seasoning.

Do I need to subordinate a second loan if I refinance the first?

Yes, because if you do not subordinate the second loan, it will be treated as the first lien on your home and the refinance loan will become second in priority.

Will a lender allow me to refinance if I quitclaim the home?

The lender won't allow you to refinance because you are transferring your rights in the property to someone else. So at most, the lender may allow the new owner to refinance the loan.

Do I need to pay PMI?

PMI is meant for conventional or conforming loans whereas MIP is for FHA loans. Fannie Mae requires their borrowers to pay PMI premiums when the loan-to-value ratio exceeds 80%.

Should I refinance with poor credit or file bankruptcy?

Instead of refinancing with poor credit and getting a higher interest rate, it is better to file for Chapter 13 Bankruptcy. The court appointed trustee will develop a repayment plan that you will be required to make monthly installments on. This will help improve your credit, because instead of paying nothing, you're at least making some payments.

Can I force my ex-spouse to refinance after divorce?

You can ask your ex-spouse to refinance the mortgage after divorce but the ex-spouse will have to submit certain documents such as the divorce decree, quitclaim deed, income documentation, etc.

Should I refinance to consolidate credit card debts?

You should do it only if you can afford to pay off the refinance loan in full. It isn't a wise decision to put your home at risk, because if you fail to pay off the loan, you may lose the home.

Can I refinance after bankruptcy?

Yes, you can refinance but if you do it immediately after your bankruptcy case has been dismissed, you'll be offered higher interest rates. It's better to wait at least 2 years after Chapter 13, and 4 years after chapter 7 discharge.

Can I refinance while I am in bankruptcy?

Yes, you can refinance, but you will need the bankruptcy court's approval. You will have to provide the lender with the bankruptcy papers. The lender will require you to make at least 2 years of payment under a Chapter 13 plan after you've filed bankruptcy. The lender will also want to consider how much equity you've built up while following the Chapter 13 repayment plan.

Can I refinance if the value of my home is less than what I bought it for?

The value of your home changes with the housing market. Therefore, the value of your home may be less than what you purchased it for. A refinance lender will take the state of the market into consideration when deciding whether you can refinance. If the value of your home is still higher than the balance of your current mortgage, and you have a good credit rating and a steady income, you may qualify for 100% rate-term refinance.

What if I don't get an appraisal report prior to refinance?

When you are trying to refinance your home, your lender will want an appraisal done on your home. You have the right to ask the lender for a copy of the appraisal report. If he doesn't respond, you should file a complaint with your State's Department of Banking and Finance.

Can lender cancel a loan due to a low appraisal?

The lender may refuse to complete the refinance loan process if the appraised value of your home is less than expected. A low appraisal will not enable you to get extra cash from the refinance.

What is the A6 Law in Texas?

The A6 Law governs cash-out refinance transactions in Texas. Under this Law, a borrower can get a cash-out refinance loan for up to 80% of the property value.

Does the A6 Law apply even if it is not a cash-out loan?

The A6 Law in Texas doesn't apply to a refinance without a cash-out option.

Should I pay tax on the extra cash from refinancing?

Since the extra cash is part of your refinance loan, therefore you don't have to pay tax on it.

What are the different cash-out refinancing options?

The loan options can be innumerable depending upon the situation you are in. For example, 30 year Fixed Rate mortgage, 5 year Interest-only, 5 year Interest-only ARM and 6 Month Libor cash-out refinance are some of the options.

Can I refinance an 80% first mortgage and not the 20% second mortgage?

Yes, you can because these are 2 separate loans. But you need to obtain a subordination agreement for the 20% second except if you are in Texas.

Can I refinance an 80-20 loan with an FHA loan?

Yes, you can combine the 2 loans and refinance with an FHA mortgage. Lenders approved by the FHA offer financing for up to 97% of the home value. Depending on the amount you qualify for, this is a good way to consolidate your mortgage loans.

Which Refinance option is best if I am late on payments on ARM?

Most refinance lenders require you to be current on your payments when you're looking to refinance. They want to be sure that you won’t end up defaulting on the refinance loan.

Should I get a reverse mortgage or go for refinancing?

Reverse mortgages are only available to help seniors remain in their homes. If you are not 62 years or older, you will not qualify for a reverse mortgage. So, you should try for a refinance loan.

Should I refinance with an interest-only loan or get a reverse mortgage?

As stated above, you must be 62 years or older in order to qualify for a reverse mortgage. An interest-only mortgage can be risky unless you understand exactly what it means.

Can I refinance a reverse mortgage to pay off bills?

If you are 62 years or older and your home meets the Department of Housing and Urban Development's (HUD) reverse mortgage requirements, then you may use the money gained from a reverse mortgage to repay your bills.

Can a lender foreclose after I have a refinance agreement?

The lender may foreclose if you default on your refinance loan payments. How much time you're given before the lender forecloses depends on the lender and your state, but generally you have 120 days.