How to Refinance a Mortgage with No Equity
Those of us who find it imperative to refinance our mortgage for one reason or another but are finding it harder to accomplish, in the present economic climate, may still have hope! If you read on you will learn How to Refinance a Mortgage with No Equity.
Refinancing Your Home Loan
If you haven’t been able build up equity in your home, because of dropping values, you might well be on the verge of ‘tearing our hair out’ owing to all the negative responses you keep receiving from banks and other lenders. But don’t despair How to Refinance a Mortgage with No equity may be just what you have been looking for.
But don’t turn away just yet as we can show you How to Refinance a Mortgage with no Equity.
There is a loan specifically designed to accommodate people who have no equity to put up but have retained a good payment history on their existing mortgage - and it will refinance you up to 105% of your home’s appraisal value. It is known as the Refi-Plus:
- Not all lenders are able to get you into a Refi-Plus refinance loan but seek out one who can and make an appointment for a discussion.
- If you don’t have private mortgage insurance, don’t worry, a Refi-Plus loan does not require it either, even if you have to take out the new loan to the maximum of 105% of appraisal value.
How to Apply for a Refinancing Loan Without Equity
In learning all about How to Refinance a Mortgage with No Equity you must remain aware that there will be considerable closing costs involved and this will be added to the loan amount to be dispersed on settlement. Once all the necessary information is collated an automatic underwriting service takes over and if it returns a positive finding your lender will formally start advancing your application. You will need:
- A current appraisal on the value of your home.
- Two years of W2s.
- Two years of tax returns.
- Up to date banking information.
- Title deed copy.
- Survey.
- Insurance information.
- Existing mortgage number.
- Contact details re existing mortgage lender.
Appraisal value
Once the appraisal value of your home is known you will be made aware of the amount you are able to borrow. The new Refi-Plus loan cannot exceed 105% of the appraisal value.
You are now well on the way to in learning How to refinance a Mortgage with No Equity and your new lender will make contact with your old mortgage lender and the insurance company involved to agree on a settlement, or closing date, for the new loan to start taking effect.
Closing
- Ask your lender for a copy of the closing statement to be sent to you as soon as possible.
- Thoroughly go over all costs associated with the transaction and make sure you fully understand all that is happening.
- Do not be afraid to ask questions.
- Ensure that you personally attend the closing to sign and date all necessary documentation put before you.
Federal regulations require a three day cooling off period before anything that you have signed becomes legal. After that you will be serviced by the new mortgage. Contact us to find out more about loan options open to you, if you do not have enough equity in your property.
Related posts:
- No Closing Cost Refinance
- 10 Appraisal Tips that Will Save You Time and Money on Your Mortgage Refinance
- How to Refinance a House
- Cash Out Refinance
- How to Refinance
- No Cost Refinance
- Mortgage Refinance Costs
- Refinancing Equity
- How to Refinance a Second Mortgage
- Mortgage Refinance Online
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