Can I refinance my mortgage?

Can I refinance my mortgage? Can I Refinance My Second Mortgage? Look at your financial picture and determine what you want to accomplish by refinancing your second mortgage. Then you can find a lender who is able to help you achieve your goals and objectives. The requirements can be adjusted and amended based on an evaluation of all the different categories.


Employment

When you are ready to refinance your mortgage, you will need to have gainful employment. In certain instances there are exceptions. If you receive unemployment that is regular and predictable, it can be used as income. A construction worker falls into this category.

Debt Ratio

You should have a debt to income ratio of 40 percent (that is, monthly debt/monthly income). This figure can be adjusted. If the figure gets higher, lenders will become concerned.

Equity

Lenders will loan up to 95 percent of the value of your home. This can vary from lender to lender.

Programs

If your loan is with Fannie Mae or Freddie Mac, you could refinance using 105 percent of your home's value, which is part of a new federal program, even if you have negative equity. As of 2009 there are no stimulus programs in place to help with refinancing.

Credit History

Lenders will take a look at your credit report. If you have some delinquencies on your report, they may decide to use a value of 80 percent of your home's value instead of 95 percent when deciding how much equity you have.


Source:ehow