2013 Refinance News » Refinancing with low equity | Home Mortgage, Financing, Refinancing, New Home Purchasing Loans Bank in Madison, WI

loan-mortgage-loans-low-rate-low-fee Loans Madison WI St Louis MO Denver CO Hannibal MO Online Loan Applications

Home » News » Refinances | Refinancing your home with low equity | 800-228-9270 | Refinance | Options | Tools | Contact 

Mortgage Loans CO - Estes Park, Denver | Mortgage Loan WI - Madison, Milwaukee | Mortgage Loans MO - Hannibal, O'Fallon

Apply Now             Buy a Home             Refinance


Refinancing with low equity

Refinances \  December 30, 2013 01:11 pm

Refinancing with low equity

Refinance options
Depending on the equity of a home, there are options to refinance the mortgage. For jumbo loans, refinancing may require equity of at least 10 percent , while other conventional loan refinances might require 5 percent. For those with no equity, this standard can pose a problem.

Fortunately, fewer Americans have negative or no equity now than the in last few years, but there still are some homeowners struggling and in need of refinancing their loan terms.

For those with less than 5 percent home equity, there is the option to refinance through the U.S. Federal Housing Administration or, for eligible veterans, the Department of Veterans Affairs. Both require less home equity, although the FHA generally has a 4 percent standard. For a VA home loan, there is no requirement for home equity in order to refinance, though not every American will be qualified for this type of home loan.

Home Affordable Refinance Program
In response to the number of American households that fell underwater during the recession, a new initiative called HARP allows qualified homeowners to refinance with little or no equity. In order to qualify for HARP, borrowers must have mortgages that are guaranteed by Fannie Mae or Freddie Mac and cannot be behind in their payments. As the program is a result of the recession and housing collapse, homeowners are only eligible if their mortgage was sold to Fannie Mae or Freddie Mac before May 31, 2009.

Since its initiation, HARP has helped millions of homeowners refinance their home even after it lost value. For many, this has prevented default and foreclosure by creating more stable and affordable mortgages. As an alternative to conventional refinance options, HARP is specifically for homeowners who have lost significant value in their home as a result of the recession and housing collapse.

Another option is to do a cash-in refinance. When homeowners choose a cash-in refinance, they bring money to pay off some of the balance of their loan. By reducing the amount owed on the mortgage, homeowners can shorten the length of the loan. However, with this option monthly mortgage payments are not reduced. Many Americans don't have the cash on hand to pay off a large portion of their loan and therefore choose other alternatives to lower monthly payments. Depending on the size of the loan, homeowners might benefit from paying off a large chunk and bringing the amount down to a conforming loan size. In those cases, it may be possible to reduce monthly payments.

If the goal is to get better loan terms by reducing the amount of interest a borrower will have to pay, prepaying is a great option. Instead of lower payments, homeowners pay more on their mortgage per month to pay it off faster. Prepaying may reduce the length of the loan and can be more economical for a homeowner who wants to pay less interest in the long run. Prepayment can be done instead of conventional refinancing or in addition.


fha-loan-purchase-a-new-home-get-approved-home-buying-couples Missouri Wisconsin Illinois Missouri ColoradoMortgage Lending Real Estate Knowledge Base

Questions about buying or selling your existing home?  

Categories:  All | Choose a REALTOR | Working with a REALTOR | Buying | Selling Financial | Homeowners 

 «  1 | 2 | 3 | 4 | 5  » 

Mortgage and Real Estate News Categories

Buyers | Market Conditions | Mortgages | Purchase | Realtor | Refinance

Home Financing Archive

August 2013 | September 2013 | October 2013 | November 2013 | December 2013 | January 2014 | February 2014 | July 2014 | August 2014 | September 2014 | October 2014 | November 2014 | December 2014 | January 2015 | February 2015 | March 2015 | April 2015 | May 2015 | June 2015 | July 2015 | August 2015 | September 2015 | October 2015 | November 2015 | December 2015 |  January 2016 | February 2016 | March 2016  


Real Estate Lending Options

Mortgage Banking Learning

Mortgage Glossary | Refinancing | Loan Options | Home Purchase Basics

Home Borrower Tools

How Much Can I Borrow? | Mortgage Calculator | Mortgage Rates | Forms 

About Thompson Kane and Company LLC

Company | Executive Management Team | Senior Loan Originators 

Home Purchase Loans in Madison and Milwaukee WI  

Mortgage Loans Springfield, Hannibal, St. Louis, MO

Purchase Real Estate Loans Denver, Boulder, CO

Google Maps: Mortgage Loans Madison WI, O'Fallon MO, Denver CO

Facebook: Mortgage Wisconsin, Mortgage Missouri, Mortgage Colorado


Apply Now             Buy a Home             Refinance




VAFHA and USDA Home Loans in ColoradoIllinoisMissouri and Wisconsin
TThompson Kane Mortgage Loans Madison WI, Denver CO, St Louis MO | 800-228-9270 | Mortgage Calculator Options with Loan Quotes. Get Started Now With TK Loans Mortgage! Lock Your Rate · Calculate Payments · Compare Loans · Skip the Bank · Types: FHA Loans, HARP, VA Loans, ARM | Boulder, Ft Collins, Aspen, Pagosa Springs, Colorado Springs, Pueblo, Golden, Grand Junction, Steamboat Springs, Denver CO, Hannibal, Springfield, Troy, O'Fallon, St Louis MO, Chicago, Quincy IL | Home Loans in Armenia WI, Baraboo WI, Beaver Dam WI, Beloit WI, Brooklyn WI, Columbus WI, Deforest WI, Dell Prairie WI, Dodgeville WI, Edgerton WI, Fitchburg WI, Fort Atkinson WI, Germantown WI, Green Bay WI, Green Lake WI, Janesville WI, Lacrosse WI, La Valle WI, Lake Delton WI, Lake Mills WI, Lodi WI, Madison WI, Mauston WI, Mazomanie WI, Merrimac WI, Middleton WI, Milton WI, Milwaukee WI Monroe WI, Montello WI, Mount Horeb WI, Necedah WI, Oregon WI, Platteville WI, Portage WI, Prairie Du Chien WI, Princeton WI, Reedsburg WI, Ripon WI, Rome WI, Spring Green WI, Stoughton WI, Sun Prairie WI, Tomah WI, Verona WI, Watertown WI, Waunakee WI, Windsor WI