A friend just bought their house 2 years ago would they be able to refinance already?

Catina
She said they called the bank and they said they can refinance for the 4.75% rate they have right now. I thought you had to have a certain amount of equity in your house to be able to refinance? Their house value has gone down and they havent paid ahead or anything - just standard 30 year loan and put 0% down

Billie
Probably not since they are upside down.

Athena
some loans have a set amount of time one must wait before refinancing (seasoning); many don't. you can refinance anytime if your house is worth the financed amount, it just doesn't make sense to refinance unless you can benefit from it. you usually use the equity to cover the closing costs of the refinance. people usually refinance because they want to pull out some equity or because they can get a better rate of interest.

George
the only way with out bringing cash to close is if this is an FHA note and they streamline without an appraisal and of course there is no credit check just a verification of timely payments on the noteI am a mortgage banker in TN & KY