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Subject:  Re: How much is enough? Date:  1/9/2011  12:25 PM
Author:  Rayvt Number:  68177 of 97881

It's no longer as 'trivial' to refinance as it once was.

Indeed. Also, if your equity falls below 80%, you need to get PMI, which as I have found is becoming harder to get. I would think also that there would be issues with documenting income for someone who is no longer working, especially if one retired early but is not drawing SS income yet.


I've been retired for 5 years, just started receiving SS last year.
We've just finished a 4% no-cashout refi. Currently, lenders *really* don't want to do a cashback refi, and they jack up the rate & fees to inform you of that. ;-)

We've had no real difficulty refi'ing, but we are an unusual case (I think).

They need to see documented income, and care little about your assets.

For most people, pension & SS is not going to be enough income to qualify. And they don't consider withdrawals from your investments as "income". The only thing they would consider as documented income was a regular monthly distribution from my IRA account, and they wanted to see 2-3 months of bank statements showing the deposit and a copy of the "confirmation of instruction" letter from my IRA custodian.
They wouldn't consider the stock dividends we receive as "income", even though we get $20,000 a year in dividends.
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