By Carrie Reeder
Refinancing 100 percent of your loan allows you to cash out
of the value of your home. With no down payment required, you
can use your money to pay off debt, invest in other property,
or remodel your current home. When refinancing, make sure that
you find the best lender so you donít get stung on high rate
Understanding 100% Refinance
100% refinancing means that you take out the total value of
your property. You will still need to pay for application fees
and points, if you decide to purchase a lower rate. Those
closing costs can add up to 3% or more of your loanís
amount. But with 100% financing, you can deduct the amount
With no equity left, conventional lenders with their prime
loans will require you to carry private mortgage insurance.
However, subprime lenders donít ask for such insurance, saving
you hundreds a year.
Refinancing also has its tax advantages. For instance, closing
costs can be deducted along with paid interest under certain
Refi Lenders Offer Instant Online Quotes
By refinancing your total homeís value, rates will be higher
than with a traditional refinance. But you can find low rates
by researching lenders online.
Lenders are now able to provide near instant loan quotes
without access your credit report. That means you get
trustworthy numbers without having needless credit hits on
report. And the better shape your credit score, the lower
you qualify for.
When you do ask for loan estimates, give specific information.
Provide precise information about your credit score, debt
and assets. If you donít know about credit or debts, check out
your credit report.
Consider Two Mortgages Instead Of One
Another way to secure 100% refinance is to apply for two
separate mortgages. With this method, you can tap into your
equity with a prime loan without having to pay for private
You can also save money by structuring your terms differently
with each loan. For instance, you could choose a 30 year fixed
for your first mortgage and a 5 year adjustable with your
With this type of financing, you want to investigate loan
quotes. You will also need to be comfortable with the added
risk level of an adjustable rate mortgage.
About The Author: Visit
www.abcloanguide.com/refinance.shtml for a list of 100%
mortgage refinance lenders online. View our recommended 100%
mortgage refinance lenders online.