Posted: Fri Apr 13, 2007 8:28 pm Post subject: Does A6 apply when no cash out is done?
does the A6 rule still apply if no cash is taken out? Can the Refinancing
be more than 80% _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
For refinancing on any property, you can borrow more than 80% of your home value. But you should have sufficient equity in the property. In general, when you refinance and take out cash worth more than your home equity (built up by making loan payments on the first mortgage), it is known as cash-out refinancing.
There is one exception to what Mac_7 wrote. If the current mortgage you have is a Texas A-6 Home Equity loan and you are refinancing it, the new loan must also conform to the requirements of A-6 lending. "Once an A-6...Always an A-6" is a rule of thumb in Texas. So even if you are just reducing the rate or term of the current loan, you must treat it as a Texas A-6.
adonis
