Finance
A Maine homeowner 'refinances' their mortgage. This means they:
ASell the mortgage to another investor
BTake out a new loan to pay off the existing mortgage, typically to get better terms✓ Correct
CAdd a co-borrower to their existing loan
DRequest a modification of their current loan
Explanation
Refinancing means obtaining a new mortgage loan (typically with better interest rate or terms) to pay off and replace the existing mortgage. Borrowers refinance to reduce monthly payments, shorten the loan term, or access equity.
Related Maine Finance Questions
- In Maine, a mortgage recorded against a property that has been paid off but not formally discharged is called a:
- In Maine, a 'subordinate lien' is a mortgage or lien that:
- A Maine buyer's debt-to-income ratio before their new mortgage would be 38%. Adding the proposed mortgage payment of $1,450/month brings the total DTI to 48%. If the maximum DTI is 43%, which option helps the buyer qualify?
- A Maine homebuyer's debt-to-income (DTI) ratio is 42%. Most conventional lenders prefer a maximum DTI of:
- Under the Homeowners Protection Act (HPA), a Maine borrower with a conventional loan must be informed of their right to cancel PMI when:
- Under RESPA, a Maine lender who refers a borrower to an affiliated title company may be required to:
- In Maine, which lien generally has the highest priority?
- Maine homebuyers may qualify for the federal first-time homebuyer credit (if reinstated) or mortgage interest deduction if they:
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