What is the norm for debt to equity in a refinace?

READER QUESTION

What is the norm for debt to equity in a refinace?

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Bills.com Resident Expert
Dec 12, 2011
BILL'S ANSWER

Sure, you are asking about the LTV, or Loan-to-Value ratio that home loan lenders use to describe the amount of equity you have in your home. Currently lenders want you to have at least 10% equity (90 LTV) in your home, and if you are looking to consolidate debt or get cash from your refinance, you'll need to have at least 15% equity (85 LTV).

We have some great calculators on the site to help you figure out your LTV and other factors of your refinance.

bills.com/calculators/

You can also apply for a loan or a refinance if you like and see if you get qualified here:

Mortgage Refinance Quote

Thanks for your question!

Comments (2)


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Bills.com
August 10, 2009
I can't think of a legitimate lender who would give someone with no income in your situation a $10,000 loan. The $170,000 in equity is nice collateral, but in this market many homes have seen more than $170,000 in equity evaporate. Any readers have suggestions?
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Hayes .
August 09, 2009
I own my home and two vehicles. They are paid for. I need a loan for 10000$ to pay backed child support. I have no income. I plan to sell my house and use the money to pay back the loan and buy another home. I need cash now but can't get a loan without income. I have @ $170,000 in equity? Is there any way to borrow the money I need?
Thanks for your feedback!

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