Print this page or keep it open while you talk with at least two lenders about conventional refinancing. It goes with the 5 guides on Conventional Cash-Out Guide. Sections are ordered by how often those guides discuss each topic, and each one quotes what the guides say about it. Write each lender's answer in its column, then compare. Nothing here is collected or sent; the boxes are for pen and paper.
Read before you call
One point from each guide on this site, so you can follow what each lender tells you.
- “A conventional loan is not insured by a government agency.” From Conventional Cash-Out Refinance Guide
- “Fannie Mae’s delayed financing exception allows a cash-out refinance soon after a cash purchase, without the usual seasoning.” From Delayed Financing After a Cash Purchase
- “Under Fannie Mae's Selling Guide, at least one borrower generally must have been on title for at least six months before the disbursement date of a cash-out refinance.” From Conventional Cash-Out Seasoning and Title Rules
- “Consolidating credit card or installment debt into a mortgage can lower the total monthly payment because mortgage terms are longer.” From Using Cash-Out to Pay Off Debt: Questions to Ask
- “Using home equity for vacations, cars or everyday spending spreads a short-lived cost across many years and puts your home at risk.” From Conventional Cash-Out: Common Mistakes to Avoid
Questions from this site's guides
| Question | Lender 1 | Lender 2 |
|---|---|---|
| Was the purchase arm’s-length? | Lender 1 answer | Lender 2 answer |
| Can I document the source of funds? | Lender 1 answer | Lender 2 answer |
| Do I have the settlement statement? | Lender 1 answer | Lender 2 answer |
| What is the maximum loan? | Lender 1 answer | Lender 2 answer |
| Is the property eligible? | Lender 1 answer | Lender 2 answer |
From the checklist on this site.
Conventional and refinance questions
What the guides on this site say:
- “Maximum LTV: lower for cash-out than for purchases, and lower again for second homes, investment properties and multi-unit homes.” From Conventional Cash-Out Refinance Guide
- “Seasoning: a minimum period of ownership on title, and on the existing first lien, before a cash-out refinance.” From Conventional Cash-Out Refinance Guide
- “Mortgage insurance: the cash-out maximum LTV generally keeps these loans below the level where PMI is needed.” From Conventional Cash-Out Refinance Guide
| Question | Lender 1 | Lender 2 |
|---|---|---|
| Will this loan require private mortgage insurance, and how could it be removed later? | Lender 1 answer | Lender 2 answer |
| Is there a waiting period before I can refinance or take cash out? | Lender 1 answer | Lender 2 answer |
| How long until this refinance's costs are recovered by its savings? | Lender 1 answer | Lender 2 answer |
Questions based on CFPB: When can I remove PMI?.
Your Loan Estimate
What the guides on this site say:
- “The new loan amount generally cannot exceed the original purchase price plus closing costs and other allowable items, and is also limited by the standard cash-out loan-to-value rules.” From Delayed Financing After a Cash Purchase
- “Compare the Loan Estimate with your current statements before deciding.” From Using Cash-Out to Pay Off Debt: Questions to Ask
| Question | Lender 1 | Lender 2 |
|---|---|---|
| Can you send me an official Loan Estimate for this exact scenario? | Lender 1 answer | Lender 2 answer |
| Which fees in the Loan Costs section are your own charges, and which are third-party charges? | Lender 1 answer | Lender 2 answer |
| Which services on the Loan Estimate can I shop for myself? | Lender 1 answer | Lender 2 answer |
Questions based on CFPB: Loan Estimate explainer.
Loan features
What the guides on this site say:
- “Documented source of the cash used, arm’s-length purchase and a settlement statement.” From Delayed Financing After a Cash Purchase
- “The refinance generally must close within six months of the purchase date, and the original purchase must have been an arm's-length transaction.” From Delayed Financing After a Cash Purchase
| Question | Lender 1 | Lender 2 |
|---|---|---|
| Does this loan have a prepayment penalty? | Lender 1 answer | Lender 2 answer |
| Can the interest rate or monthly payment change after closing? If so, when and how? | Lender 1 answer | Lender 2 answer |
| Will I have an escrow account for property taxes and insurance? | Lender 1 answer | Lender 2 answer |
Questions based on CFPB: What is a prepayment penalty?.
Rate lock
| Question | Lender 1 | Lender 2 |
|---|---|---|
| Is my interest rate locked yet? If so, on what date does the lock expire? | Lender 1 answer | Lender 2 answer |
| What happens if closing is delayed past the lock date, and is there a cost to extend it? | Lender 1 answer | Lender 2 answer |
Questions based on CFPB: What's a rate lock?.
Points and lender credits
| Question | Lender 1 | Lender 2 |
|---|---|---|
| Does this quote include discount points or lender credits? | Lender 1 answer | Lender 2 answer |
| What would the same quote look like with no points and no credits? | Lender 1 answer | Lender 2 answer |
Questions based on CFPB: Discount points and lender credits.
Before you choose
What the guides on this site say:
- “Compare them with the interest you expect to save.” From Using Cash-Out to Pay Off Debt: Questions to Ask
- “Reserve cash-out for purposes with lasting value, and compare alternatives that do not replace your first mortgage.” From Conventional Cash-Out: Common Mistakes to Avoid
| Question | Lender 1 | Lender 2 |
|---|---|---|
| What are your individual and company NMLS IDs, so I can look them up? | Lender 1 answer | Lender 2 answer |
| Who will service the loan after closing? | Lender 1 answer | Lender 2 answer |
Questions based on NMLS Consumer Access.
This worksheet is general education. It does not ask for or store any personal information, and it is not an offer or a pre-approval. Compare written Loan Estimates, and verify every lender on NMLS Consumer Access.
Sources
- CFPB: When can I remove PMI?
- CFPB: Loan Estimate explainer
- CFPB: What is a prepayment penalty?
- CFPB: What's a rate lock?
- CFPB: Discount points and lender credits
- NMLS Consumer Access