Manny S. RizzutoMortgage Consultant NMLS#: 145229
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With today’s low mortgage rates, you may be considering refinancing your home. There are a variety of reasons that lead many of us looking to refinance our mortgages, however you may not be familiar with what refinancing can do for you. Here are a few changes that motivate people to refinance: Getting a better interest rate Change the length (term) of your loan Convert an adjustable-rate loan to a fixed-rate Cash-out refinancing Borrowing against the built-up value to pay for remodeling, etc. The fact is that you can refinance as often as you want, but some lenders look for a waiting period between home loans and appraisals. You also need to have equity to qualify for taking out cash against on your loan. And because most lenders will typically only approve you for 80-90% of your loan’s total value, it can be difficult to obtain more than one cash-out refinance. However, taking another refinancing route can be beneficial in some scenarios. If interest rates have dropped, you could save thousands of dollars over the course of your loan. Refinancing is also a possibility if you’re facing foreclosure due to not being able to make your payments. The Rules of Cash-Out Refinances Cash-out refinances function differently than rate-and-term refinances. Some lenders have a waiting period after the closing date of 6 months before you can take cash out on a traditional mortgage. If you have a VA-backed mortgage, you must make at least six consecutive payments before applying for a cash-out refinance. You also have to prove that your ...
Mortgage insurance has been a staple in the mortgage industry since the late 1950s. Private mortgage insurance, or PMI, is in fact an insurance policy much like any other. Mortgage insurance on conventional loans is required when the first mortgage exceeds 80 percent of the value of the home. If the borrowers put down 20 percent or more, no mortgage insurance is needed. Should the loan ever go into foreclosure, the lender is compensated by the difference between the borrower’s original down payment and 20 percent of the value of the home. This amount will vary based upon other factors but generally speaking that’s how mortgage insurance works. Yet up until the passage of the Homeowners Protection Act of 1998, mortgage insurance was a lifetime affair. Unless the mortgage was retired by sale or refinanced, the mortgage insurance policy would always be a part of the mortgage, regardless of the current market value of the home. This Act provided ways for consumers to get rid of mortgage insurance, either by a direct request or natural amortization, for all loans issued on or after July 29, 1999. Borrower’s Request Borrowers may request cancellation of a mortgage insurance policy by writing the current lender asking for a review and removal of PMI once the mortgage balance is naturally paid down to 80 percent of the original value of the property. The time it takes to reach that amount is determined by the amortization period of the loan. A 15 year mortgage will be paid down sooner than a 30 year loan, for example. There really aren’t any requirements of the borrowers other than making the official request and waiting for the ...
As rental prices are steadily climbing, inventory and mortgage rates have remained low during the COVID-19 pandemic. The unprecedented circumstances have sparked a change in how people want to live. More than ever before, people are longing for additional space and more natural surroundings for the sake of their mental health and well-being as many are envisioning how they can work from home more in the long-term. Resilience Found in the Market for Second Homes The coronavirus pandemic has not only pushed apartment dwelling New Yorkers to seek more space and nature outside of the city, it has also untethered them from their downtown workplaces as companies have embraced remote working. The result is a phenomenon that boasts the benefits of “co-primary” homes: “Secondary homes are more popular than ever. People may own or rent smaller homes close to their office. Buyers are realizing that they may not have to go to their office each day. Virtual jobs are in place and employers are seeing the positive results...Expansive, private yards and especially those with a pool are surely a winner! Bidding wars are more common than ever with some homes going in one day with five different competing offers. Everyone is enjoying being close to beaches, beautiful neighborhoods and homes.” (Pat Mayer, Diane Turton Realtors ) For those that are confident financially, instead of trading up in the city or simply purchasing a second seasonal home, these residences function more as equal homes to their current address. As the mindset shifts in how people think about a primary residence, we ...
The real estate process has changed a lot over the last few months. Let's connect to set you up for success this summer with our new Sellers guide. Download your FREE guide now.
The real estate process has changed a lot over the last few months. Let's connect to set you up for success this summer with our new Buyer guide. Download your FREE guide now.