With conforming loans, rate-and-term (No cash-out) refinances have instated seasoning guidelines on the second and other junior mortgages. If the refinance will be paying off a second mortgage with a rate-and-term refinance, that second mortgage must be at least 12 months old. Otherwise, the borrower must use a cash-out loan. What is the difference? Rate-and-term refinances allow LTVs in excess of 90%, while cash-out refinances are normally limited to 75% LTV (80% for certain homes). For more information, see the "Refinance Loans" article in the "Loan Programs" section.
Was this article helpful?
This book makes it easy to not only buy a home, but figure out everything that you need to do, even get a loan. In simple and easy to understand language, it talks about where you should buy a home, what to look for in a home, how to find a home, how to get an agent, how to get a mortgage and more. This is a step by step process that you, a new home buyer, can use to purchase a home.