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PostHeaderIcon Home Refi, Refi Loan & Second Insurance

A home refi means the same thing as refinance your home mortgage. A refinance is when a borrower pay off an existing mortgage loan with a new one. A bank or company does the refinance, they take out a new loan either with a lender or with the same one and they change your rate and sometime your loan amount. The reason that your loan amount changes is either to combine two mortgages, pay off some other debt like credit cards or home equity loans. One other reason is if the closing costs get rolled into the loan, this will result into the loan amount increasing. Reasons for home refi’s are to get cash, and or lower their interest rate which will lower their monthly payments.

Refi loan is a loan that is obtained once a refinance is done on the home. When a borrower has a mortgage loan and they want to lower their monthly payments or change the terms of the loan or even cash out this mean that they want to refinance. When a refi on a loan is done it means that a bank or financial company pays off the current mortgage and get the borrower a new loan with a lower interest rate. To refinance your home there are many different factors that come into play. Like if the borrower DTI ratios are where the lenders want them. The DTI ratios are the borrower debt to income ratios which tell the lender how much money goes towards the mortgage payment this is called the front end DTI. The backend DTI is how much income it takes to take care of all the debt. Another factor is the LTV, this mean the loan to value. A refi loan take time, but if done properly can benefit the borrower a significant amount.

A second insurance means a client who has to mortgages. When a client owns second home their Homeowners insurance on second home will be much higher than their primary insurance. An Increased premium on the second, this is do to the fact the client doesn’t spend as much time at the second home, as they do on their primary. On your primary residence you can get a much better rate than you can on your second home insurance.

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