Real Estate
February 25, 2020
link to facebook link to twitter
More Stories
Paying off debt to buy a house can be challenging Your income is a lifeline to finance a home How to plan the optimal time to buy a rental property How to make your financial profile less intricate A factor that can drive your mortgage cost up How child support and alimony can affect your ability to get a mortgage What to look for when getting a mortgage on a manufactured home Why getting a 30-year fixed-rate mortgage is a smart financial move How to lower your cash to close when buying a home What you need to know about securing a VA mortgage Mortgage payment relates to purchase price What to expect mortgage rates to change in the upcoming months Loan limits for 2020 make getting mortgage easier Three reasons to buy home at end of year Can you get a mortgage with bad credit? Income and all outstanding loans are key factors to obtain a mortgage How to get a mortgage without providing tax returns The new way to get a mortgage with 1 year income tax returns Four common home buying mistakes to avoid How to create wealth with your income and finances Should you buy a house with monthly mortgage insurance? 2019 conforming loan limits rise FHA loan limits for 2019 increase No more VA limits in Jan. 2020 Should you cash out to refinance What makes the most sense? Three pricey loan scenarios to watch A surefire way of making loan process a hassle Changing income and job status may affect mortgage chances Six common mortgage loan scenarios How to lower your debt to income when getting a mortgage Three reasons you should not buy a home Types of loans based on credit score How the FHA 100-mile rules your ability to rent or buy Three quirky issues that will hurt your mortgage Seven common mortgage mistakes Why your mortgage payment keeps changing The credit score it takes to get a mortgage What to expect in today’s loan process? How 1031 tax-deferred exchanges work Six to avoid when purchasing a home How to use rental income to qualify for a mortgage Mortgage inquiry makes your credit score drop? Why waiting for mortgage rates to get better is a losing proposition Transfer property to family and be protected under Prop 13 FHA requirement might hurt buying chances Purchase price should not be most important factor Finances matter when buying a home Could the 30-year fixed mortgage get to 3 percent? Mortgage rate sounds too good to be true How the mortgage process gets ugly if you have a difficult picture Should you go FHA or conventional for purchasing your first home? Two mortgage process problems you will want to avoid Home value when refinancing What you need to know about the mortgage 4506-t document Don’t make mistakes when getting a mortgage refinance A non-traditional program for self-employed mortgage borrowers Should you buy and build or buy a single family home? How expensive your mortgage will be due to bad credit? The loan process and what not to do Should you refinance with today’s mortgage rates? Be careful getting a mortgage if you have a bankruptcy Cash-out refinance or home equity Lender knows how to purchase business? Read the fine print Cash to payment formula when buying a home A bank statement program might help get a mortgage Pulling credit may not make sense Why the VA mortgage is the best home loan Can you use roommate income to get a mortgage? Best benefit for your first-time home buyer A loan program you may be eligible for based on your credit score Be wary about paying off this type of mortgage Common questions on financed mortgaged insurance loans Things that affect your first-time buyer mortgage options Self-employed income The #1 mistake consumers make when getting a mortgage… How much are closing costs when you purchase a house? Two mortgage loan programs get a better interest rate How much of your mortgage income should be going towards an auto loan? Working two jobs makes now easier to get a mortgage How mortgage lender credits work

Five quirky refinance scenarios that work

By: Scott Sheldon
January 18, 2019

In the last few years, mortgage lending guidelines have begun to loosen as the broader economy is stronger now that the recession has past. Following refinance scenarios are eligible for financing…

Cash-out refinancing followed by cash-out refinancing just six months after. You heard that right you can do a cash-out refinance and then turn around and do another cash-out refinance just six months later.

Cash-out refinancing after a previous rate and term refinance six months ago. If you did a payment reduction loan on your mortgage six months ago and are now looking to pull money out you can now do a cash-out refinance on a loan that was just refinanced as a rate and term refinance just six months earlier.

You can also now do a rate and term refinance on a previous loan that was a cash out refinance previously, you were not able to do this under Fannie Mae or under Freddie Mac. A cash out refinance loan would typically cost you a slightly higher interest rate and slightly higher fees then you can turn six months later and do a rate reduction loan.

You need now only provide one year of income tax returns when being self-employed which is great if you have been in the same field for the most recent last five years. The big benefit is if you had one income year most recently that was strong, but the previous year for example was terrible, the lender can automatically throw out the bad year so long as your most recent year of income tax returns is enough income to qualify.

Some lenders will still allow you to do a conforming high balance loan on a jumbo mortgage loan product paying off a second mortgage as long as there was no drawer on that second mortgage in the last 12 months and call the loan rate and term. The benefit is it allows for a higher loan to value, a better interest rate and lower fees otherwise you are subject to a conforming loan under Fannie Mae and Freddie Mac which classify that scenario as cash out subjecting you to worse loan terms.

Looking for a mortgage? Get a fast quote now.

Scott Sheldon is a local mortgage lender, with a decade of experience helping consumers purchase and refinance primary homes second homes and investment properties. Learn more at