Tonight , I want to share an experience I have in refinancing my primary residence last couple weeks. It was pretty frustrated. I bought this condo 6 months ago , Feb 07. The condition of the condo was not great, kitchen and bathroom need work. I bought it for 300K and spend about 20K to remodel the place. Currently, the price of the condo is going around 350K, there are two transaction in June-July to support the price. Since I put down 20% down for the condo, I'm looking to do a refi-cash out to pull my money. Two months ago, I went to several bank, like wamu, wells fargo, bank of America. However, they all turned down to me! The reason is because I didn't own the place for more than 6 months. I try again last weeks after 6month period, but I didn't have much luck neither. They have another reason to turn me down again. They said they can not use the current market value (350K), instead, they can only use my purchase price (300k) and give me a 80% LTV. Basically, they're saying " NO, WE Don't want to lend you money in this current time" I guess the sub prime has hit the banks BAD. They tightened their policy and is very difficult to give you a cash out loan. Well, I will not give up here, I'll continue to look for banks to get my cash out ... Will update you how I do next weeks.
Monday, August 20, 2007
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3 comments:
that is really true, sub prime have effect the world economic now, god bless you to do your refinance asap :) cheer up
What is the meaning of LTV? and when do you usually do the refinance?
LTV: Loan to Value. Let's say an mortgage balance is 180,000 and the value of the property is 200,000. Then LTV is 90%. I usually refiance whenever there is apperication of my property and I can pull out money from the bank to invest into next project.
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