Why are refinanced mortgages quoted out w/ separate rates than regular mortages?
Bster13 asked:
If I want to buy a house for $100k or refinance a $200k house with $100k left on the principal balance, why do the rates differ? I’d still be getting a mortgage for $100k either way, no?
***So generally refinances should get lower rates, correct?
STEVE
If I want to buy a house for $100k or refinance a $200k house with $100k left on the principal balance, why do the rates differ? I’d still be getting a mortgage for $100k either way, no?
***So generally refinances should get lower rates, correct?
STEVE
MACK
it depends on the loan to value. In the refi case you are looking at a 50% loan to value. In the purchase scenario you’ree asking 100% ffinancing.
Edit:
It depends on a lot of different things like,
Loan to value
Type of loan – FHA/VA or conforming.
Credit score
Loan amount
Purpose of the loan – Cash out, rate/term?
There are hits or adjustments depending on the things listed.
If you have a loan to value of 50% most if not all adjustments are void so you should have the same rate or slightly better than a purchase.