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Showing posts from November, 2014
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Cash-out Refinancing: Everything you need to know
What it is and when to use it?If you have a significant amount of equity built up in your home and would like to convert that equity into actual money you can use, a cash out refinance From Majestic Home Loan may make sense for you. Here are some of the key things you should know. What is a cash out refinance?A cash out refinance is when you take out a new home loan for more money than what you owe on your current loan and receive the difference in cash. For example, if your home is worth $300,000 and you owe $200,000, you have $100,000 in equity. With cash out refinancing, you could receive a portion of this equity in cash. If you wanted to take out $40,000 in cash, this amount would be added to the principal of your new home loan. In this example, the principal on your new mortgage after the cash out refinance would be $240,000. When is a cash out refinance a good option?A cash out refinance makes sense in a number of situations: When yo…
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How to Remove your FHA Mortgage Insurance
One of the most common questions asked by FHA borrowers is how and/or when can they remove their monthly mortgage insurance. Mortgage Insurance serves a very good purpose. It allows potential home buyers with only 3.5% down payment to buy a home. To truly avoid mortgage insurance a down payment of 20% would have been needed, which can take a long time to save. But for those who did use FHA financing to purchase their home what happens when property values increase to the point that their loan is less than 80% of the new appraised value? Can’t they ask their lender to drop the mortgage insurance? No. Not exactly. But there are solutions that may make sense and are worth looking into, and Majestic Home Loan can help. Short History on FHA Mortgage Insurance Rates Not too long ago FHA mortgage insurance wasn’t too expensive. Prior to October 4, 2010 the standard rate used was .55% of the loan amount. This meant that on a $300,000 FHA loan the month…