Best Mortgage Refinance Companies in New Rochelle, NY

New Rochelle, NY Mortgage Refinance FAQs

• Do individuals pay closing costs with VA cash-out refinance in New Rochelle?

  Yes, borrowers have to pay closing costs with VA cash-out refinance. These include lender's title insurance fees, which are between $500 to $1,500; origination bills, which cost $1,000 for every $100,000 borrowed; and VA funding expenses, which can be $3,600 or $2,300 per $100,000 borrowed. However, several borrowers in New Rochelle are exempted from paying, including those receiving VA compensation for a service-connected disability and surviving spouses with Dependency and Indemnity Compensation.

• How can a borrower in New Rochelle qualify for a cash-out refinance?

  In New Rochelle, borrowers must have over 20% equity in their property to be eligible for a cash-out refinance. For instance, individuals with a property worth $350,000 must have paid off $70,000. Borrowers can cash out up to 80% of their home equity to finance their kitchen and bathroom remodeling, home additions, or the property's interior or exterior improvements. They may also opt for cash-out refinance to seek a lower monthly payment, change their loan terms, or consolidate debts.

• How often can a borrower refinance their mortgages in New Rochelle?

  There is no limitation on how often an individual can refinance their mortgages. However, most lenders set a timeframe for how soon a borrower can refinance; for example, those with government-backed programs, like USDA, FHA, and VA, have to wait six to seven months to refinance. On the other hand, residents of New Rochelle who recovered their closing expenses within 30 months can readily refinance their mortgages.

• Who can apply for the New Rochelle First-Time Home Buyer Down Payment Assistance Program?

  The First-Time Home Buyer Down Payment Assistance Program is exclusively for first-time homebuyers (except for veterans with a DD-214) who have at least $40,000 annual household income and have financial resources to pay for mortgages. Eligible participants must also submit pay stubs and tax returns and complete a mortgage counseling session from a HUD-certified not-for-profit housing agency. The down payment assistance program only finances primary residences in New Rochelle, including cooperative apartments, single-family homes, and condominiums.

• Does refinancing make the home lose equity after refinancing in New Rochelle?

  In New Rochelle, refinancing mortgages does not directly affect the borrower's home equity. However, the equity can change if an individual decides to pay the closing costs of refinancing into the new mortgage, as they increase their mortgage balance and decrease their home equity. For instance, if a borrower has a closing cost of $5,000 and wants to roll out the fee into the new mortgage, their equity will be reduced by $5,000.