Posted on: 04th Sep, 2007 06:11 am
My daughter are refinancing a house they own togerher 50/50. We have just receivied the "GOOD FAITH" ESTIMATE OF closing costs, payments etc. The estimate has used the original amount of the loan rather than the balance on the loan after four years of payments. Is this correct?
refinance is just paying off the old mortgage and taking a new one in its place.
in a cash out refinance, based on the equity you have in the house, you take out a mortgage for more than the existing balance on your present mortgage. in such a case the new mortgage amount will be higher than existing balance on the loan.
you should ask for the reason why amount mentioned is higher than the balance on the mortgage when you are not looking to do a cash out.
miller
in a cash out refinance, based on the equity you have in the house, you take out a mortgage for more than the existing balance on your present mortgage. in such a case the new mortgage amount will be higher than existing balance on the loan.
you should ask for the reason why amount mentioned is higher than the balance on the mortgage when you are not looking to do a cash out.
miller
Thanks.
Hi Pam,
Have you asked your lender why the good faith estimate has used the original loan amount rather than the outstanding balance on it? If he says that the refinance loan will be equal to the original loan amount only, then it will be better if you go with a different lender for refinancing.
Have you asked your lender why the good faith estimate has used the original loan amount rather than the outstanding balance on it? If he says that the refinance loan will be equal to the original loan amount only, then it will be better if you go with a different lender for refinancing.