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 fight against [...]
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 following [...]
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