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Old 01-08-2008, 10:18 AM
 
29 posts, read 132,855 times
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I bought a home in oct 07 for 280k and took a loan for 225k at 6.375%.
I am getting refinance offers at 5.5%. I would like to a refinance cash-out.
The appraised value of the home is 345k.
Question is will i be able to do a refinance cash-out in the state of TX on 80% of 345k and be able to get 270k as refinance cash-out ?
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Old 01-08-2008, 10:23 AM
 
Location: Burlington County NJ
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No. It would be 80% of what your home is worth. That means if your home is still valued at 345K (which it may not be unless this is a more recent appraisal) you can borrow up to 80% of the value which would be approximately 276k. So if you really wanted to take the extra cash out you'd be able to get around 35 or 40k (after closing costs)
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Old 01-08-2008, 04:54 PM
 
Location: NC
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So your question is whether or not you can do an 80% cash-out refi using the appraised value? That's on a lender by lender basis, but Fannie Mae guidelines (the ones that lay out the rules for your standard conventional mortgage), have no restrictions on using the appraised value to refi when owned less than 12 months.

Check with your favorite lender to see if they'll do this. Or contact a broker who can shop the loan around for you. This time last year, this would have been a very easy loan to do, but with the mortgage mess, lenders are tightening guidelines on when they see a risk, ie, lower scores, high LTV's (above 80%) and even cash-out refis.
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Old 01-09-2008, 06:58 AM
 
29 posts, read 132,855 times
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Quote:
Originally Posted by ChipL View Post
So your question is whether or not you can do an 80% cash-out refi using the appraised value? That's on a lender by lender basis, but Fannie Mae guidelines (the ones that lay out the rules for your standard conventional mortgage), have no restrictions on using the appraised value to refi when owned less than 12 months.

Check with your favorite lender to see if they'll do this. Or contact a broker who can shop the loan around for you. This time last year, this would have been a very easy loan to do, but with the mortgage mess, lenders are tightening guidelines on when they see a risk, ie, lower scores, high LTV's (above 80%) and even cash-out refis.
checked with wells fargo and they said they dont do refin with home bought less than a year, maybe the rep didnt know what he was talking, can you pm me any brokers names, will be eager to try them out.
any difference in negotiating with a lender and a broker ?
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Old 01-09-2008, 08:08 AM
 
Location: NC
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Wells is one of lenders that are more restrictive.

I'm a broker, but licensed only in NC and FL. Unfortunately, I don't know any TX brokers. Maybe you can post that question to this forum.

The primary difference between a broker and a lender is that a broker deals with a number of different lenders, so if one lender can't do it (like Wells Fargo) your loan can be shopped until a lender is found who can do it.
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Old 01-09-2008, 08:09 AM
 
4,962 posts, read 12,548,765 times
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Quote:
Originally Posted by kmurali70 View Post
I bought a home in oct 07 for 280k and took a loan for 225k at 6.375%.
I am getting refinance offers at 5.5%. I would like to a refinance cash-out.
The appraised value of the home is 345k.
Question is will i be able to do a refinance cash-out in the state of TX on 80% of 345k and be able to get 270k as refinance cash-out ?
Did you do any major improvements to the home? How did the value go up $65k in 3 months?? Did you have it appraised yourself, or how did you come up with the $345k value?

Lenders are going to use your purchase price as the value for a year, unless possilby you can prove with receipts that you put $65k into the house since then (eg. a large addition or something).
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Old 01-09-2008, 09:49 AM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,617,271 times
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Tim is right on the money!

Most lenders require 12months...and some require 6months.

If it's less than 6months you will need to show structural improvement. (extra sq footage) They will not take cosmetic improvements.
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Old 01-09-2008, 09:16 PM
 
29 posts, read 132,855 times
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Quote:
Originally Posted by banker0679 View Post
Tim is right on the money!

Most lenders require 12months...and some require 6months.

If it's less than 6months you will need to show structural improvement. (extra sq footage) They will not take cosmetic improvements.
the house was selling for 345k but the builder gave a discount of 65k to bring it down to 280k...because of the housing market.
so was wondering if the 345k still hold good for refinancing.
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Old 01-09-2008, 09:19 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,617,271 times
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same rules still apply

Quote:
Originally Posted by kmurali70 View Post
the house was selling for 345k but the builder gave a discount of 65k to bring it down to 280k...because of the housing market.
so was wondering if the 345k still hold good for refinancing.
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Old 01-10-2008, 09:54 AM
 
4,962 posts, read 12,548,765 times
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Quote:
Originally Posted by kmurali70 View Post
the house was selling for 345k but the builder gave a discount of 65k to bring it down to 280k...because of the housing market.
so was wondering if the 345k still hold good for refinancing.
The market value of your house therefore is $280k not $345k and that is what the lenders will use.
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