Seasoning Requirement Mortgage

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.

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Real Estate 101

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