Refinancing a Conventional Mortgage in Colorado
Conventional mortgages offer a tiered set of solutions for homeowners looking to refinance. Your qualifications for these different levels will need to be evaluated with your mortgage consultant, as each level has a very specific set of borrower requirements. As with everything in the conventional mortgage arena, these mortgages are underwritten using an automated underwriting process. The details listed here are representative of the maximum conventional solutions available, all requiring great credit.
As noted before, there are two types of refinance: The type that pulls equity (known as a cash out refinance) and the type that doesn't (known as a limited cash out refinance).
Cash Out Refinance:
For primary one to two family or secondary one family homes, the maximum LTV available is 90%. No private mortgage insurance (PMI) options exist with hybrid mortgage solutions, and higher LTV solutions are available, but not as a conventional solution. With most cash out refinance transactions, there are additional costs to the transaction that are investor required (Fannie or Freddie) which can be priced as discount points, or to rate.
For one to two family investment properties, the maximum LTV available is 85%. Higher LTV solutions can be found in the Colorado Alternative Mortgage section. With investment property cash out transactions, there are incrementally higher costs to the transaction that are investor required (Fannie or Freddie) which can be priced as discount points, or to rate.
Limited Cash Out Refinance:
For primary or secondary one to two family homes, the maximum LTV available is 95%. This loan can be structured without PMI by taking advantage of a hybrid mortgage solution. Higher LTV's are available, but not as a conventional solution.
For one to two family investment properties, the maximum LTV available is 90%. Higher LTV's are available, but not as a conventional solution. Avoiding private mortgage insurance with an investment transaction is much more difficult. Please talk with your mortgage consultant for all the details. With investment property transactions, there are additional costs to the transaction that are investor required (Fannie or Freddie) which can be priced as discount points, or to rate.
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