Real estate market

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, [...]

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 [...]