Real estate market

An additional processing step required by refinances is that the loan officer or processor must acquire a payoff statement from all institutions and lenders who will be paid by the proceeds of the refinance loan. The payoff statement will indicate how much the borrower owes the creditor.
In most situations, the most important payoff statement [...]

Most residential lenders require appraisal reports to be no more than three months old at the time of closing. Many will accept appraisals that are up to one year old; however, the appraiser will have to issue a recertification letter that confirms the applicability of the report’s value estimate.
Often, however, it is in the [...]

Although a refinance can lower your monthly payments, it may not always be a good idea. A homeowner who has already paid off ten (10) years of a 30-year loan, would be unwise to refinance to another 30-year loan–even if the rate were lowered. It may even be unwise to refinance to a 20-year [...]

Mortgage refinances tend to be more simple than purchase loans. Since 1990, refinances have also become more commonplace.
During the 1970s and 1980s, mortgage interest rates tended to be very high. During much of the period, home buyers had to settle for double-digit rates on their mortgage financing. This was due to the [...]

The rate and term refinance, or “no cash-out” mortgage, deals with a straightforward refinance of an existing loan. The loan-to-value (LTV) ratios for non-cash-out refinances are higher than for cash-out, because cash-outs increase the lender’s risk exposure. Strictly speaking, conforming rate and term (non-cash-out) refinances—and their higher loan-to- value (LTV) ratios—are applied to the [...]

The main ingredient of the cash-out refinance is its option to provide the borrower with additional cash from an increased loan amount. This privilege comes at a price. Conforming lenders set lower limits on cash-out loans, as compared to non-cash-out refinances. Note that if the property has no current mortgage liens on it, [...]

To mortgage lenders, there are basically two types of refinances:
1. Cash-out
2. No cash-out (rate & term)
As the names imply, the difference is whether the borrower cashes out any of the property’s equity—although this may be too simple an explanation. Some rate & term refinances allow some cash back to the borrower.
Most cash-out [...]

Mortgage refinances refer to the replacement of an existing mortgage loan with another mortgage loan. The old loan is paid and closed with the proceeds of the new loan. Moreover, this new mortgage loan also may be used to pay off other liabilities and debts that the borrower has incurred or plans to [...]