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    Home Refinancing FAQ

    Do you want to buy but still owe on your home? It may be a good idea to refinance in order to do so. We put together a few questions that are important to ask before you take the next steps:

    • What is the maximum loan we can take out on our current home?
    • Will we be renting out our home, if so what is the timeline for that?
    • How do you calculate how much we can borrow?
    • What are the interest rates?
    • Who would be a good resource to ask questions?

    We asked our trusted and preferred lender Robert Fillyaw with AnnieMac Home Mortgage, these questions, here are the answers:

    What is the maximum loan we can take out on our current home?

    -If you are going to do a conventional mortgage backed by Fannie Mae or Freddie Mac, the maximum LTV (Loan to Value) for a cash out refinance on your current residence is 80%.

    Will we be renting out our home, if so what is the timeline for that?

    -If you decide that you want to rent out your home, will have to produce a letter of explanation stating that you are buying a new primary residence because your current home is too small, too far from your work, etc.

    How do you calculate how much we can borrow?

    -With a conventional mortgage, you can have a maximum DTI (Debt to Income) ratio of 50%. Your DTI is based on your gross income before taxes and deductions. Back to renting out your property, if you are going to go this route, you can use your future rental income to qualify for a mortgage.

    What are the interest rates?

    -Interest rates are currently low. This is a great time to refinance your home. Keep in mind, interest rates change over time and could be different the following year.

    Who would be a good resource to ask questions?

    -Robert Fillyaw with AnnieMac Home Mortgage is available to answer any  and all questions you may have about refinancing your home. Feel free to reach out to Robert at 352-204-9600 or click here: https://teamfillyaw.annie-mac.com/loan-officer

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