Discover 100% Refinance Loans
There was a time when a 100% refinancing mortgage were not terribly difficult to get. Also known as no money down loans, are generally divided into two loan types. The first is an 80 20 home loans where the first loan is for 80% and the second covers the other 20%. This is to protect the borrower from being charged for private mortgage insurance. The interest rate on the second loan is usually higher than the 80% loan.
There are other variations to 100% refinance loans. For instance, it is possible for a borrower to be approved for an interest-only loan in order to minimize monthly payments. There is always the traditional loan option where the borrower pays back the principal over time with interest. It is important that the borrower is familiar with and understands his/her options regarding no money down mortgage loans.
Options On 100% Refinancing Mortgages
There are also ways in which the borrower reduces the closing costs of the loan. One way is to reach an agreement with the lender so that a fraction of the purchase price goes toward paying off some of the closing costs, which typically include various loan fees and escrow charges. If this is agreed upon, typically no more than 6% of the purchase price can be directed at lowering the closing costs. This is often an attractive option because a number of closing costs are added to the amount of the loan, and the borrower is therefore not required to pay them out of his/her own pocket. Be aware that all lenders are different and they may have boundaries as to which closing costs they are willing to cover.
Costs For A 100% Refinancing Mortgage
Remember that when a property is purchased, there are certain out-of-pocket costs that come with it, such as appraisal fees and pest control. Another thing to keep in mind is a prepayment penalty. Before signing any loan documents, the borrower should check to see if the loan comes with a prepayment penalty. This will be crucial knowledge when the time comes to refinance your loan.
100% Refinancing Mortgage On Home Equity
Many borrowers wish to pull equity out of their homes in order to finance major expenses such as home remodels, car purchases and college education. For these borrowers, a 100% home equity loan or second mortgage is an easy alternative that leverages the existing equity or ownership interest in a home at a reasonable interest rate.
100% Bad Credit Home Loan
It is possible to qualify for a 100% poor credit loan, as long as your FICO score is above 520. In these cases, a borrower may qualify for a 100% subprime loan; a bank loan that carries a higher interest rate than an A or alt A mortgage loan. 100% hard money loans are nearly impossible to find, as most private money lenders require at least 25% equity by the borrower to lend money. 100% online Florida loans have become very popular lately.
California Bad Credit Loans