All Forum Posts by: David Kelly

Cash out Refi's right now are very attractive, especially on a primary residence.  I would compare the two, get a quote from both sides.  This will give you a clear idea on which way is better for you to go.  If your current interest rate is not as low as it could be, this might add to your reasons to cash out.

Matt, There are no issues with this.  All this is doing is putting you on title to have rights to the property.  If the home is ever refinanced, sold, or anything else done with it you will need to also sign off on the paperwork.  You can do this as soon as you would like as long as the owner of the property knows what this is doing of course.

@Collin Sharf

First you should make sure that both lenders are using the same numbers to start with. Payoff amounts, value of the home, taxes and insurance, Etc. It’s hard to compare when they are using different numbers. Next look at how much they are charging for the rate, if anything. Find out what the processing or underwriting fee is. Make sure that they are charging the correct amount for recording fees and state taxes. How much are they quoting for title fees?

I would be happy to take a look at them for you tomorrow if you would like. I can easily see the differences. 

@Nick Folwell

Down payment assistance has its place. If you need help and don’t have other options then it is a solid option depending on what your state has for available. I’m in Mn but lend in 48 states if you would like me to look into it for you. I can’t do all of the programs however, but I can check. 

@Matt Wells

You can refinance it if you want to be on the mortgage. But you will need to qualify. Right now rates are low enough where it might also make sense to do it depending on where your rate is at currently. 

That will all depend on the value and guidelines with Conventional financing. What is owed on the property? How much is it worth? Is this an investment property or primary, and many units? A cash out refinance can be done to pay off a HML.

New guidelines allow for .5% vs the 1% before.  Or, if you have an income based payment plan we can use that payment vs the .5%.  What state are you looking to purchase in?

A rate isnt locked until a purchase agreement has been produced. Even then, you can still float the rate up until closer to closing. Rates are based off of LTV's and DTI and if we don't know what numbers we are working with then we cannot lock accordingly.

Rates are not usually part of the pre-approval letter because, again, we dont know what property you are looking at buying and they all vary based off of taxes, insurance, etc...  However, if you are close to not qualifying based off of a higher rate, I would always be sure to tell the Agent and borrower that if rates increase that the loan may not be good anymore.

Hi @Bryson Decker

What issues have you ran into with the financing? DTI, Appraisal values, specific underwriting conditions? There should be no reason that a refinance goes that long without a reason, and a resolution to the problem. You can try to get the money back, but ultimately the appraisal is an item that is owned by the borrower. However, that doesn't mean that the lender doesn't have the option to reimburse you back for their bad lending skills. I would try to push it up to management and see what can be done. They will go the the Loan officer and find out what the deal is. Let me know if you have any other questions.

Lenders are all doing different LTV's right now because of the new 7% portfolio rule with Fannie/Freddie. Some aren't even doing cash outs on investment properties. I am able to do them. If you have any specific questions feel free to reach out!