Morgage Refinancing or Mortgage Refinancing, which one is it? I can’t tell you how many times I see it spelled “morgage”. Hello people, spell check? It's morTgage.

In any case, both will probably get you on the path to what you want, but which is better, FHA or Conventional? Actually neither is the best. That rest with VA who has the most liberal terms that allow a Veteran to take out up to 100% of the value of their home in cash. Yes, the good old greenback.

As for the other two, Conventional will be more restrictive as you will not get mortgage insurance thus you will be limited to 80% max but more likely a lot of lenders will only go to 75% loan to value and you need a decent credit score not to get walloped on the rate. Below 700 and the adjustments start to get steep for a cash out mortgage refinancing.


This leave FHA, which is somewhere in between VA and Conventional for mortgage refinancing. FHA will lend up to 85% for a cash out refinance. You will have to pay the upfront mortgage insurance as well as the monthly MIP but at least you can get it done. A 620 credit score will get you a good rate as well.

So whether you want a morgage refinance or a mortgage refinance really just amounts to crossing your t.

Today I happen to stumble across a change from one of the MI companies that may become significant. I haven’t seen it from the others but it does not mean other do not have the same policy.

Most Mortgage Insurance companies now require a minimum 680 credit score in order to be eligible for mortgage insurance regardless of what an automated underwriting engine says. What is interesting is the United Guaranty otherwise know as UG has instituted a minimum 720 credit score for any Third Party Originated Loans (TPO), otherwise known as Brokered Loans.

Also, the maximum Debt Ratio on a TPO loan is capped at 41%, again regardless of the automated findings. Banks and directly lenders do not have this restriction.

This is why it is so important to know you credit score prior to applying for any loan. Because I know how important this is, I have arranged for you to get a 7-day FREE trial of 3 Bureau Credit Monitoring! Plus Credit Report & Score so you will be able to fix anything you need, prior to applying for credit.

Unfortunately, this is just another example of another nail being placed in the Mortgage Brokers coffin. Many unsuspecting consumers will get caught in the pinch as well. Most people use Mortgage Brokers to shop for the best rate and terms. By putting in these restrictions to the Broker Community, the MI companies have un-leveled the playing field. Either the Broker will get shut out of certain products or Lenders will raise the prices to consumers because they know they have a captured market. Thus the consumer ends up paying more in the end because there are fewer lending options and when there are fewer options, prices always rise. Get your 7-day FREE trial of 3 Bureau Credit Monitoring! Plus Credit Report & Score today.