If you refinance all of your loan, you can get all of the value of your home in cash. Since you don't have to make a down payment, you can use your money to pay off debt, buy another property, or fix up the one you already have. Make sure you find the best lender when you want to refinance so you don't get stuck with high rates and fees.
How to Understand a 100% Refinance
When you refinance for 100 percent, you get the full value of your home. If you decide to buy a lower rate, you will still have to pay application fees and points. These costs can add up to 3 percent or more of the principal amount of your loan. But if you have 100% financing, you can take the amount off your principal.
If you have no equity left, prime loans from traditional lenders will require you to have private mortgage insurance. But subprime lenders don't ask for this kind of insurance, so you can save hundreds of dollars a year.
Refinancing can also help you save money on taxes. For example, in some cases, you can deduct both the interest you paid and the closing costs.
Refi Lenders Offer Instant Online Quotes
When you refinance the whole value of your home, your rates will be higher than when you do a regular refinance. But if you look for lenders online, you can find ones with low rates.
Lenders can now give you loan quotes almost right away without looking at your credit report. That means you can trust the numbers you get, and you won't have any extra hits on your credit report. And your rates will be lower the better your credit score is.
When you ask for loan estimates, be as detailed as possible. Give accurate details about your credit score, loans, and assets. Check your credit report if you don't know anything about credit or debts.
Instead of one mortgage, think about getting two.
You can also get a 100% refinance by applying for two different mortgages. This way, you can use a prime loan to access your home's equity without having to pay for private mortgage insurance.
You can also save money by making the terms of each loan different. For example, for your first mortgage, you could choose a fixed rate for 30 years and an adjustable rate for 5 years.
For this kind of loan, you should look into loan quotes. You will also need to be okay with the extra risk that comes with a mortgage with an adjustable rate.
