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I own free and clear and want to refin

I own a property in PA free and clear of anything. No leins no mortgages ect..
I want to take out a mortgage on the property. The property appraised at 90000. I want a mortgage that put as much cash as possible in my pocket. My credit score is 640 with 0 balances on all accounts. (all paid off) Im thinking 30 year mortgage. Any advice????
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December 13 2007 - US

Replies (37)

Profile picture for mem400
Contributions: 7
do u want the cash in a lump or along the way. a reverse mortgage might work for you. What state are u in

matt


mem400@gmail.com
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December 13 2007
It depends entirely on what you plan to do:
- Can you verify income?
- Can you verify assets?
- How long do you plan to keep this loan (do you intend to pay yourself back)?
- How long do you plan to keep the home?
- What payment can you afford?

Please seek the advice of a Mortgage Planner not just a Loan Officer. Someone who will ask a lot of questions and take the time to give you qualified advice.
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December 13 2007
Profile picture for ColoradoLender
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lol
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December 13 2007
Profile picture for BG Almighty!
you should be able to get at least 70% of the value without getting hit too hard on the rate. You can go 80%, but it will probably hit you on the rate. Of course, I'm assuming this is owner-occupied. there are rate adjustments and limitations on investment properties. Hope this helps.
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December 13 2007
I can verify income and assetts. I plan to occupy the property. I would like the cash in one lump sum to buy other properties.
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December 13 2007
Profile picture for dbrobin540146
Don't DO IT. Don't let any bank get ahold of you... Stay away from borrowed money. It makes you slave to someone else.
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December 13 2007
Profile picture for ColoradoLender
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Go to 70% LTV on a 30 year fixed, ask your friends to refer you to a broker in the area they have worked with in the past and had a good experience with, good luck. Oh and dont buy some of the rhetoric above, the difference between a loan officer and a mtg planner is semantics....
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December 13 2007
I need 80 to 90%. Is this possible in this day and age?
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December 13 2007
Profile picture for ColoradoLender
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Sure its possible, but at 70% you're gonna get the best rates, as you go up in LTV your rates will do the same.
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December 13 2007
Profile picture for mortage
Real Estate Agent
Contributions: 29
If you are looking to buy other properties you also have to take into consideration that you now will have a mortgage payment and that will be included in your liabilities so you will have to have enough income to show that you can pay for both mortgages plus the taxes and insurance in order to qualify for an investment property loan. You must also realize that non-owner occupied properties have a higer interest rate than owner occupied properties and right now have tougher guidelines for qualifying such as a higher downpayment. You may me be able to qualify you may not it depends on your DTI or debt to income ratio. Only if your 62 or older can you qualify for a reverse mort and judging by the pic you are not. you can email luke.s@crystalcovecg,com for more detailed info
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December 13 2007
Profile picture for jilln_mn
I think that's great that you want to invest in properties. Using your current home as a source of income is not a good idea. What happens if your property value drops? What happens if you get sick, lose your job, etc. Do you have enough income to support a refinance AND another property?

If you do decide to get a refinance, make SURE it is NOT an ARM, or a negative amortization loan. Also, READ, READ, READ the fine print.
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December 13 2007
Profile picture for Countrywide2008
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We can do this if what you say is true.
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December 13 2007
If you qualify under Fannie Mae guidelines, you will be able to go up to 80% LTV and still get the lowest fixed interest rates available.
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December 13 2007
i have to disagree.

You will get the best rates up to 70% . You have to pay 1/2 a point to take it to 80%.
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December 13 2007
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kellner17

Shaker Heights, OH

Contributions: 5
I can get you 95% of the value at about 6.5%. You would need to qualify based upon income. It would need to be primary residence.
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December 13 2007
Profile picture for songbless
raise your credit score to 700 . start by paying cedit to half the balance.This will raise credit score.when you get a mortgage try bi weekly payments and paying additional principal even if you pay small amounts on additional principal . This will help you to pay home off in about 7to 10 years.
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December 13 2007
Profile picture for frank1003
Contributions: 266
kellner, with all due respect, there's no way you or anyone else can get ANYBODY with a 640 score 6.5% on a 95% cash-out deal on a 30 year fixed. You're either highly misinformed, or simply telling a bald-faced lie.
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December 13 2007
frank

he can go FHA.

He isnt telling the guy about the PMI , or 1.5% funding fee or anything else. Also, 6.5% would give the broker well over 2 points yieldspread.


He fails to mention those fineprint items.


He also doesnt need a 700 fico. He just needs to get DU approval and take out 70 % of what the property is worth.

If he needs more, up to 80 , the 'hit' to the price is about 1/2 a point.

Simple.
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December 13 2007
Profile picture for frank1003
Contributions: 266
Tom, I agree. I was referring to the blanket 95% at 6.5% claim. This is how unsuspecting consumers get suckered. I'd love to see the GFE on that puppy!
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December 13 2007
Take 60% cash out no questions asked put behind a credit line to 90 use as you need it and pay as used upon
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December 14 2007
Profile picture for ColoradoLender
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Geez, since Zillow sent out that mass email inviting everyone to check out the discussion boards, there sure has been an influx of idiots....80% C/O with no hits whatsoever to pricing (ya right)

Oh and ya gotta love nancy, mispelling MORTGAGE, you'd think you could spell your own profession, would'nt ya?
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December 14 2007
Profile picture for frank1003
Contributions: 266
Good advice, Art. That's probably the most sensible and actually do-able situation.

What is going on here anyway? Did the students of the TV infomercial "be a mortgage broker in 3 weeks for the low, low price of 3 easy payments of $30" just graduate or something?
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December 14 2007
Profile picture for ColoradoLender
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Frank- Zillow sent out a mass email inviting a whole slew of people to join, as a result you see the wonderful advice above....wonder if that was their invention.
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December 14 2007
Profile picture for frank1003
Contributions: 266
That explains it, I thought I forgot to take my medication again!
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December 14 2007
Profile picture for ColoradoLender
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invention=intention

need more coffee i guess.....
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December 14 2007
Nancy, I will be using the funds to buy hopefully two properties out right. Foreclosures. They average around 30k in my area but are worth alot more.
So I will only need enough income for the future taxes and insurance which my tenants can cover.
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December 14 2007
Profile picture for Recesq
Contributions: 4
Swygert, you can see from the responses some loan officers know their stuff and some don't and most like to act as if they know everything.

You need a financial professional to examine your ENTIRE picture including your goals for these FCs and financial goals in particular. You need someone local familiar with the market.

Depending on your goals and current situation, a heloc may be smart-especially one with a fixed rate option. Or the 30 yr fixed may be better. Conventional lenders can go 90% cash out. FHA can go 95% cash out. ALT A can go 100% cashout. A reverse mtg can only give you around 60% cash out max depending on your age. Each has its advantages and disadvantages, this is why you need an advisor that A) knows all these products, and B) can analyze your situation in regard to your goals.

If you have difficulty qualifying bc of income, job or assets you can consider a hard money loan for 65% ltv....but w rates 12-20%.

Good luck with your projects!

Ralph Cummings
540-207-9749
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December 14 2007
you should definetly go fha on your cash out because you can go upto 95% you will have pmi which is mortgage insurance but its only .5% /12 months towards payments for 5 years its about 41 dollars for every 100k. any inquires contact me mikeb@afrhomeloans.com
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December 14 2007

Getting a mortgage will not be a problem, the question is a what interest rate? I would advise you to contact a mortgage consultant and get any derogatory marks off your credit removed before you apply for the loan. This will save you thousands over the life of the mortgage. Hope this helps

Thomas martin

 

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December 24 2007

Based on all I have read Nancy Kuo seems to have it right.  But after 24 years as a lender people want to hear what they want and then usually choose WRONG.  Her advise is on the money.  I would run a sceanario of the refi and and the investment prop together for an approval.  why refi and not get approved.  I would also use a seller concession for the closing costs on the purchase.  This will leave money in your pocket.  by the way unless you have significant income to handle the two mortgages in the event you lose a tenant, I would be very careful.  This is how many people got into trouble.  I can be reached at mortgageguy101@aol.com

Jim Brown

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December 25 2007

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