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Mortgages Made Simple|Non Recourse loans and Cash Out Refinances - September 10, 2009 Episode
What's the difference between a recourse and a non-recourse loan? and How much equity should one have in a property before considering a cash out refinance? This week we answer these two listener questions.A recourse loan allows the lender to try to collect the money they lose on a foreclosure or short-sale from the homeowner in what's called a deficiency judgment. A non-recourse loan, on the other hand, doesn't allow the lender to collect any money on their loss. This is the most common type of residential loan. A cash out refinance now requires a homeowner to have at least 20% equity depending upon certain loan characteristics. Jumbo loans, loans over $417,000, require more equity. The problem in the current lending environment, however, is if your credit scores are below 740 the rate is increased. So it might be better to contact a local bank for a 2nd in order to get a better interest rate.Listen to "Non Recourse loans and Cash Out Refinances"If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com. Subscribe in a readerSubscribe to Mortgages Made Simple by EmailTags: podcast podcasting mortgages loan loans bank home finance money mortgage http://www.text-link-ads.com/xml_blogger.php?inventory_key=9HU86RCX76S49MVO3IHK&feed=1
[ Thu, 10 Sep 2009 10:00:02 PDT ]
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