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Refinancing 100 percent of your loan allows you to cash out all of the value of your home. With no down payment required
you can use your money to pay off debt
invest in other property
or remodel your current home. When refinancing
make sure that you find the best lender so you don’t get stung on high rate and fees.

Understanding 100% Refinance

100% refinancing means that you take out the total value of your property. You will still need to pay for application fees and points
if you decide to purchase a lower rate. Those closing costs can add up to 3% or more of your loan’s principal amount. But with 100% financing
you can deduct the amount from your principal.

With no equity left
conventional lenders with their prime loans will require you to carry private mortgage insurance. However
subprime lenders don’t ask for such insurance
saving you hundreds a year.

Refinancing also has its tax advantages. For instance
closing costs can be deducted along with paid interest under certain conditions.

Refi Lenders Offer Instant Online Quotes

By refinancing your total home’s value
rates will be higher than with a traditional refinance. But you can find low rates by researching lenders online.

Lenders are now able to provide near instant loan quotes without access your credit report. That means you get trustworthy numbers without having needless credit hits on your report. And the better shape your credit score
the lower rates you qualify for.

When you do ask for loan estimates
give specific information. Provide precise information about your credit score
debt loan
and assets. If you don’t know about credit or debts
check out your credit report.

Consider Two Mortgages Instead Of One

Another way to secure 100% refinance is to apply for two separate mortgages. With this method
you can tap into your equity with a prime loan without having to pay for private mortgage insurance.

You can also save money by structuring your terms differently with each loan. For instance
you could choose a 30 year fixed for your first mortgage and a 5 year adjustable with your second mortgage.

With this type of financing
you want to investigate loan quotes. You will also need to be comfortable with the added risk level of an adjustable rate mortgage.