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Updated almost 9 years ago,
VA Refi -Bring Extra Cash to Closing or Pay Down Principal First?
I had a VA refinance set up, my VA appraisal for the LTV came in at 90% which is a problem.
Now the company says it can't go through unless I bring the difference of about $11,000 extra cash to closing. But from what I gather the company will just pocket the cash as profit, and my loan amount will remain the same. Would it be better for me to pay the $11,000 on my own first, to pay down the principal on my current mortgage?
Then my loan amount will be below 90% and my refi loan will be $11,000 less.
I am suspecting that I benefit if I pay my principal down on my own first on my current mortgage, rather than bring extra cash to closing to the new refi company. Is that a correct assumption?