I hope by the time you read this article, it is not too late. Fha is making a major change, not only on Long Island mortgage, but mortgages throughout the country. Currently, if a borrower wants to refinance a mortgage with Fha with cash out, you can go up to 95% of the value of the house. As of April 1, 2009, the loan to value of any cash out refinance to be insured by Fha may not exceed 85% of the appraised value.
Whenever an Fha loan is submitted, it is assigned an Fha case number. As long as an Fha case whole is assigned before April 1, 2009, you can still go up to 95%. This means that a borrower has slight to to act. A loan must be submitted and assigned an Fha case number. The time to wait is over. The infer Fha is instituting this course is house prices that continue to fall. Long Island houses as well as houses throughout the country continue to decline, so if you are seeing for cash out on a refinance, this is the time.
Let me elucidate what a cash out refinance means. First of all, this does not apply to purchases. The 97% loan to value limit is still in effect. There are two types of refinances on a home you already own. One is a rate and term refinance. This is a refinance where all you are doing is getting a good rate. You are not getting any cash when you refinance. This convert does not apply to rate and term refinances. A cash out refinance means that not only are you paying off your old mortgage, but are receiving money as well. A cash out refinance includes paying off other debts, such as reputation card debts. So even though you will of course not receive any cash form your Long Island mortgage refinance, it is still considered a cash out refinance. To put it other way, if your new mortgage only covers paying off the old mortgage plus conclusion costs, it is a rate and term refinance. If your new mortgage covers paying off your old mortgage and conclusion costs plus receiving cash or paying off other debts, it is a cash out refinance.
If you have plans to pay off debt or want to receive cash by refinancing your Long Island mortgage or any other mortgage and need to have an Fha insured mortgage, the time is running out. You need to get started immediately or this occasion will be lost.
Time is Running Out on Fha Cash Out Refinances - Do it Now