I dont have any equity on my house but i still want to refinance?

Josephina
let's say my house is worth 400, 000 and i want to refinance. if there is no equity in my home could i put a down payment of $40, 000 to qualify for refinance?

Hildegarde
You might be able to get away with only 10% down.IF you have no loans outstanding - including cars and IMMACULATE credit. That means paying your credit card in full each month. Revolving credit damages your rating.Keep in mind that with less than 20% you will pay that costly PMI insurance./

Mallory
I thought that the sole purpose of refinancing was to raise cash for use in projects, etc, using the equity in the house. If you can come up with $40, 000, why do you need to refinance? Just use the $40k - it's yours and you won't have to pay any financing charges, etc.

Arleen
If the value of your home has dropped below the the market value, the bank will require you to put down cash to lower the mortgage to 80% of the market value.The only reason to do this is to get a lower interest loan.