mortgage refinancing?

My husband and I have taken a mortgage on our house about 4 years ago. I know this is going to sound stupid, but if we refinance, do we get our equity back, just like we would if we were to sell it? I am confused about that bit. I just thought of this and I do not know where to look for more information. If someone knew, it would be appreciated. :

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NO, you do not get your equity back, but you use it in getting the new mortgage. You have to have equity in home to get a loan - no more 0% down loans. You do not LOSE it, you are credited with the equity. The more equity, the lower your monthly payments and the less interest you pay over the life of the loan. Talk with your lender about a Loan Modification. It is easier, quicker and cheaper than a Refi. It benefits your lender because you might go to a different lender, and you by reducing your interest rate and monthly payments, and costs less than doing a refi
Your question is a little bit confusing, but if I understand it right the short answer is NO. You can?t take your equity back just as you?ve sold your house. You still live in that house and that house is collateral for money you have borrowed. When you are moving out and selling the house you are taking your equity back. You thou can pull some more money out of your house when refinancing. If your house went up in price, technically you can take bigger mortgage than the one upon purchasing. But that means you are borrowing more money. Yes, you will receive a nice check when refinancing, but you unpaid principal balance will be increased exactly by this amount
The way a refinance works is you take out a brand new loan for the cost of buying the old loan at a new lower intereset rate. Doing so, yes, you keep your equity. Example. You bought a home for $100, 000 4 years ago. On a 6% interest rate and a 30 year loan, your monthly payment interest principal will be $599. 55. After 4 years of making that payment. Your remaining balance will be $94, 614. 53. uming the value of your home stayed the same, you will have $5, 385. 47 in equity in your home. Now, when say you can get a lower interest rate at 5%. What happens is, you get a new loan for 30 years which pays off the remainging $94, 000 balance. You still owe the balance on your home, you still keep the equity, but your monthly payment drops to $507. 91 a month. You keep the equity, but you will now have 30 more years to pay instead of 26 from your previous loan
just as an example: You owe a mortgage of 200k at 7% you are refinancing the 200k at 5% You get NO money You owe 200k, your home is worth 400, so you take a new Mortgage for 250k then you would get a check for 50k
There are two basic types of refinancing. One is called a Rate and Term Refinance where you take just what you owe plus fees and get a new loan for that amount. The second is called a Cash Out Refinance. This is were you take what you owe plus a certain dollar amount. That extra money can go to other debts to consolidate or as cash back to you. You would get the funds after the loan funds, paid off your old loan, and records the new lien against the property. There are different rates and conditions with both loan options. Generally, Cash Out Loans have higher rates and lower loan amounts based on your homes value
You get your equity in exchange for a longer term in exchange for lower rates. Or something like that ;

Tags: mortgage, equity, generally, selling, knew

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