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cashing out - refinancing a home loan... |
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Seasoning
is a term many consumers only learn about after they buy a
home below market value. If you are
trying to refinance a loan and take "cash out" then you
should know that most lenders will only allow you to use the
purchase price of the home as a current value for the first
six (6) or twelve (12) months - regardless of the appraised
value. The one exception is if you can document
improvements made to the property since your ownership
however certain restrictions apply depending on the lender. |
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CASH
OUT REFINANCE MATRIX *
Definitions:
LTV = Loan
to Value
Your Loan-to-Value is determined by calculating the percentage
of your new loan compared to its existing market value or
purchase price. For example, if your home is worth
$500,000 and you owe $400,000 then you have an 80%
Loan-to-Value.
CLTV = Combined Loan to Value (Total of all Liens - 1st, 2nd, Home Equity
Line etc...also known as TLTV - Total Loan to Value) |
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Assumptions:
Full Documentation for
Income and Assets, New Home Purchase, Single Family Residence,
Acceptable Credit and Employment History and other standard
underwriting guidelines for US citizens.
Loan to Value Ratios Will Vary from
Lender to Lender
* It is important to note that this matrix
should be used as a reference only. Each lender has
different guidelines and not all products are available in all states
or from every lender. |
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Learn More
About Interest Only Loans
- Find a Lender
Today! |
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Loan Amount |
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Primary Residence
LTV |
Primary Residence
CLTV |
Second Home
CLTV |
Investment
Property CLTV |
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Up to $400,000 |
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80% |
100% |
80 / 100 % |
80 / 90 % |
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$400,000 - $650,000 |
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80% |
100% |
80 / 100 % |
80 / 90 % |
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$650,000 - $750,000 |
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75% |
100% |
75 / 100 % |
70 / 90 %
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$750,000 - $1,000,000 |
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75% |
100% |
75 / 100 % |
70 / 90 % |
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$1,000,000 - $1,500,000 |
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70% |
100% |
70 / 100 % |
70 / 90 % |
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$1,500,000 - $2,500,000 |
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70% |
100% |
70 / 100 % |
70 / 90 % |
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Over $2,500,000 |
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70% |
100% |
70 / 100 % |
70 / 90 % |
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