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Required X amount of equity to refinance?


jpkennedy79
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It depends several factors, including your credit score, the type of loan program you're trying to get into, and if you want a cash-out refi. You can check out the sites of different lenders to get more specific info on what's available for your particular situation.

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There actually is no requirement to have equity.

Why are you wanting to refinance?

To get a longer term on your mortgage? Lots of people are going from 2 and 3 year ARM's to fixed rate 30 year mortgages.

To take equity out of your home?

Again, no limit "on paper"*, but in reality it has to be worthwhile when you consider the closing costs involved.

*Then there is Texas. Texas has a law that is intended to protect consumers and there the limit is that the max loan for "cash out" is to be at 80% of the value of your home. So, if your home is worth 100K and you owe 75K, you can borrow up to 5K. In general a good idea, but sometimes really is not good for the owner of the home.

Charles

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