How to get past the $100k cash-out limit on the new Conforming Jumbo
we've had the new conforming jumbo since about April 2008, and lot of you have been asking to consolidate your existing 1st and 2nd's into this product which until 12/31/07 has a max limit of $729,750.
Unfortunately, if your 2nd is greater than $100k, your out of luck since the guidelines don't allow more than a $100k consolidation (cash-0ut). For example if you had a:
1st loan of $350K
2nd loan of $80K
3rd loan of $100K
Total debt of $530k
it would be nice to get one new 30 yr fixed for $530k, unfortunately the way to get their involves multiple refinances.
1st you'd refinance to $417,000 on the 1st and choose to subordinate the existing 3rd for $100k. Since the current 1st and 2nd = $430k you would need to come up with $13K to close.
All of this assume your FICO and LTV are within the lender's guidelines (think FICO 720 min and LTV <70% and you should be fine).
So now after you complete the 1st finance you move on to the 2nd one. This time you get a new loan for $517,000 (remember we're capped to max $100k cash-out at a time).
What about rates, well right now the conforming jumbo is about 0.75% higher than a conforming loan.
Unfortunately, if your 2nd is greater than $100k, your out of luck since the guidelines don't allow more than a $100k consolidation (cash-0ut). For example if you had a:
1st loan of $350K
2nd loan of $80K
3rd loan of $100K
Total debt of $530k
it would be nice to get one new 30 yr fixed for $530k, unfortunately the way to get their involves multiple refinances.
1st you'd refinance to $417,000 on the 1st and choose to subordinate the existing 3rd for $100k. Since the current 1st and 2nd = $430k you would need to come up with $13K to close.
All of this assume your FICO and LTV are within the lender's guidelines (think FICO 720 min and LTV <70% and you should be fine).
So now after you complete the 1st finance you move on to the 2nd one. This time you get a new loan for $517,000 (remember we're capped to max $100k cash-out at a time).
What about rates, well right now the conforming jumbo is about 0.75% higher than a conforming loan.
Comments