If you’re considering refinancing and are having trouble finding a lender to approve your new home loan, there is one option you might not have considered. Gina Pogol at HSH.com explains how cash-in refinancing could get you that much needed approval.
Cash-out refinancing has gone out of style. With mortgage financing so hard to come by these days and because so many homeowners have negative equity, the new mortgage trend is “cash-in” refinancing. With cash-out refinancing, you borrow more than required to pay off your current mortgage, and get a check for the difference. Your new loan balance is higher than your old one was. Cash-in refinancing is the opposite: You borrow less than the current balance of your mortgage. Your new mortgage balance is therefore less than your old one. Find out why so many homeowners are opting to bring cash to the table when they refinance today.
Freddie Mac states that nearly a third of mortgage refinancing loans today are of the cash-in variety. These homeowners would not readily qualify for today’s best refinance rates without buying their way in. If you’re considering a new refinance mortgage in this manner you’ll get far more bang for your buck by avoiding unnecessary fees and markup, including the mortgage origination fee.
Recent changes to the laws protecting you from mortgage broker abuse prevents your broker from charging you the origination fee and taking a commission for marking up your interest rate. There are a dozen or so junk fees that serve no purpose other than boosting the profit of your lender and broker. It is possible to get wholesale refinance rates paying as little as one percent for loan origination without junk fees. You can learn more about getting the lowest refinance rates without paying junk fees for your next home loan by checking out my free Underground Mortgage Refinancing Videos.