Getting cash when you refinance into a loan with a higher principal amount is not as easy as it used to be.
Excerpts from a New York Times article:
"...'And here is where the hard part begins', said Melissa Cohn, the president of Manhattan Mortgage. 'Have things gotten tighter?' she asked. 'Most definitely. In fact', she said, 'some banks have just stopped doing cash-out refis.'
"'Those that continue to make such loans', Ms. Cohn said, 'will often lend up to only 60 percent of the home’s value, while others place a cap of $100,000 on the amount of cash a borrower can extract from the home. As recently as last year', she said, 'the limit was $250,000'.
"'Homeowners who do find a lender willing to offer a cash-out refinance should be prepared to pay a higher interest rate than they would pay if seeking a conventional refinance loan', Ms. Cohn said...."
Read the New York Times article on the subject Here. How do you think this will affect home loans?
Share Your Thoughts
How do you think this will affect home loans?