Rate Term Refinance after HML

[Jenny Bayless]

Hi everyone,

I have a HML that I work with that will provide a loan for 90% of purchase price. If I find a property that requires no work, would I be able to then do a rate-term refinance of that property at essentially 90% LTV? For example, if the house costs $150,000, I would be able to obtain a HML for $135,000 and I would be required to put down the $15,000 plus closing costs. Could I then do a rate-term refinance for a loan of $135,000 or would I be required to do an appraisal (assuming it appraises at $150,000) and then put additional funds down to reach the 15% or 20%- meaning I would need to put an additional $15,000 to have $30,000 in?

Thank you in advance.