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cashing out -  refinancing a home loan...
 

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.

 

 

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)

 

 

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.

 

 

Learn More About Interest Only Loans - Find a Lender Today!

 


 
Loan Amount Primary Residence LTV Primary Residence CLTV Second Home
CLTV
Investment Property  CLTV
Up to $400,000       80% 100%  80 / 100 % 80 / 90 %
$400,000 - $650,000       80% 100% 80 / 100 % 80 / 90 %
$650,000 - $750,000       75% 100% 75 / 100 %  

70 / 90 %

 

$750,000 - $1,000,000     75% 100% 75 / 100 % 70 / 90 %
$1,000,000 - $1,500,000       70% 100% 70 / 100 % 70 / 90 %
$1,500,000 - $2,500,000       70% 100% 70 / 100 % 70 / 90 %
Over $2,500,000       70% 100% 70 / 100 % 70 / 90 %