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refinancing

I was trying to refinance my house last year of 2011, the bank I was applying to was just getting all my information for about almost 6 months. After all, my friend working at that bank told me.. that they actually can not refinance my house because my balance is only 50 thousand something...it must be 70k above. Is this correct? by e.aritrangco658 from Garner, North Carolina. Oct 15th 2015 Reply


Derick Condron (rightstartoregon)
#32 ranked lender in Oregon - 597 contributions

Some lenders will have a minimum loan amount level. So sounds like a bank specific rule.

Oct 15th 2015
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,524 contributions

Since the Frank Dodd financial reform laws enacted after the housing crash, it is very difficult for many lenders to offer small mortgage loans. It varies, but loans under $50,000 - $60,000 will generally become a bit harder to find, as not everyone will offer small loans anymore. This is because the new rules severely limit fees as a percentage of the loan amount, and with small loans, it is super easy to exceed the maximum allowed.

Oct 16th 2015
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Jesse Stroup (jessestroup)
#199 ranked lender in California - 591 contributions

Some lenders will have a min loan amount, all you need to do is shop with a local mortgage broker.

Oct 15th 2015
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,933 contributions

Current laws limit how much a lender can make by doing your refinance.. For low loan amounts, it's difficult to earn enough to make it worth doing.. For this reason, every lender has a minimum loan amount.. There are some that want to see $70K or above, some even higher. But some will go down to $50K. Try contacting a LOCAL mortgage broker and apply with them. Once they see your complete loan profile, they will be better equipped to advise you properly. Also, by applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with many lenders with each one offering a different type of lending program. This is unlike the local bank which typically only has a few lending programs. The more lenders, the more lending options, and the more likely your scenario will be accepted.. Plus, the broker is experienced in seeking out the best loan terms for your particular scenario, and he has lower overhead which typically results in lower rates and fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Oct 15th 2015
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