Mortgage Insurance Update:

For Refinance/Cash-Out... No cash out will be allowed for loans that require mortgage insurance, mortgage insurance is applicable once the loan to value is 80% or more, so if you want to have cash out, you must have below 80% to be able to get cash out from the existing home, based on the mortgage insurance companies new restrictions.   So mortgage insurance will only issue insurance pretty much for purchases or refinances that are considered rate and term.

You can still buy say at 10% down or 5% down, in some special cases there are still purchases allowed at 0% down; however for refinance/cash-out of existing homes it is being very restrictive at this moment. So you must have at least 20% equity for cash/out refinances to be considered.

By Tony Cole.

Tags: Loan_Updates

Updated on Thursday, Jan 29 2009 03:33 PM PST

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