Section 5: Conventional Refinance Loans
Jumbo Cash-out Refinance Loans
To refinance your mortgage, you’ll need to meet your lender’s refinancing requirements, which will likely include having enough equity in your home and having a debt-to-income ratio of 43% or lower. Outside of that a conventional refinance is treated like a conventional loan. A conventional loan is one that is through Fannie mae and Freddie Mac. Conventional home loans have been streamlined through the years to provide access to the mortgage market for all types of buyers; first time home buyers, first time move up buyers, and investors. A conventional home loan is a large sum of money lent to a borrower by a mortgage lender. Convectional loans often have higher lending requirements but the benefits of meeting those requirements are returned with competitive rates, down payment requirements, and competitive offers on your future home. When a prospective homeowner is ready to shop around for a mortgage, they will work with their Orbit Home Loan mortgage broker. This is a financial professional who brings together borrowers and lenders. They are not lenders and, as such, do not use their own funds to advance mortgage loans. Instead, they act as intermediaries, helping consumers comparison shop, bringing them a variety of quotes from different lenders at one time.
Jumbo Cash-out Refinance Requirements
Conventional loans work like this: Your Orbit Home Loan mortgage broker (Mortgage Banker) works on your behalf to qualify you with the most competitive lenders in the nation. Conventional mortgages are typically lent out with 15 or 30 year repayment periods; the one that’s right for you depends on your personal finances, your income, and the interest rate you can secure. Once you are qualified, completed the process and have purchased the property your lender will sell your loan to Fannie Mae and Freddie Mac or but still function as the servicer of your loan and will be responsible for collecting your payments. It is important to remember that you payments includes your promise to pay back the lender with interest so they can pay Fannie Mae or Freddie Mac.
Jumbo Cash-out Refinance Loan Credit Score Requirements
You will need good credit of at least a 620 score and a solid employment history.
Jumbo Cash-out Refinance PMI
If you have at least 20 percent equity, you may be able to refinance to a conventional loan with no MIP and save big on your monthly payments.
Talk with an Orbit Home Loan specialist if you're considering a Jumbo Cash-out Refinance.
Are jumbo mortgage rates higher?
Traditionally, when looking to refinance you must have a net tangible benefit. Although the benefit does not have to be a better rate this is a viable option to get a better rate. Make sure to work with your Orbit Home Loan Broker to figure out what the best option is for you.
Jumbo Cash-out Refinance v. Traditional Jumbos
(CHART)
Talk with