When refinancing a mortgage it is based on a number of things. These things include is your income enough to support your current debt plus your new mortgage, how much equity is left in the house after the refinance, what your current fico score is, job history(for some loans), do you have assets etc.. All of these things combined make up a refinance transaction. I am located in State College so if you need further assistance please let me know I can be reached at 1-800-839-6186x334 Thank you and good luck
The Priorirty Mortgage Group
I am not sure what you mean by "based on your income." There are several factors included in refinancing. Work history and Salary ( most Lenders look for 2 years of steady work and an income that fits your payment) They also go by credit score. ( The higher your score, the better rate and terms you can get) They also look at the Loan to value( amount of loan compared to the appraised value of the home)
Another thing they look at is if you are getting cash out. In other words, are you just paying off the existing mortgage or are you coming away from the table with more money than you currently owe.
Terms of mortgages are based on risk. Whether you qualify for the loan is determined by how risky the Lender thinks the loan is. I hope this helps. If you need any more help, please feel free to contact me. The very best of luck to you!
Michael D Delp
4802 Old Bethlehem Pike,
Telford Pa. 18969
Refinancing a mortgage involves many of the same factors that taking out a purchase money mortgage does, plus a refinance further tightens the % of debt t(what you want to borrow) compared to value of the home if you are taking money out to pay other things.
Banks in my area typically limit debt-to-value to no more than 70 or 75%, or no more than the amount needed to pay off the existing debt