List vs re-fi

[Nell Plotts]

There is an interesting series of comments in the Portland Housing Blog where a homeowner put a home up for sale because s/he wanted to cash out thinking that if it didn't sell he would get a mortgage (evidently owned free and clear). The house didn't sell so it was taken off the market and the owner applied for a modest mortgage.

The mortgage was not approved because the home was offered for sale within the last 6 months.

Who would have thunk-ed it? Lesson: if you want cash re-fi first, then list the home.

[Rhonda P]

Crazy, huh? The mortgage company wants to make sure they're doing a loan where they will receive a certain amount of months interest.

There was a time that a few lenders would make an exception if a home was recently listed, if the home owner could explain why they changed their mind and could prove their intentions of staying in their current home.

The period between list time and able to refi can vary.