New buzz word around town: "Short ReFi"
I had a mortgage broker email me the other day with what appeared to be a standard solicitation.
But before I hit the delete button, I gave the title a snoop and there was a term that caught my eye.
They were stating that they do "Short ReFi's"
At first I though about it and could sort of figure out what that meant.
So I started researching it and also asked one of the mortgage brokers that I work with what that was all about.
So I'm thinking to myself, what's the difference between a Short ReFi and a Loan Modification?
The principle is the same: refinancing the existing loan(s) with a lower principal amount and/or lower interest rate, with the permission of the mortgage holder.
Well, I guess the only difference is that a Short Refi could come from a lender OTHER than the one who holds the mortgage as opposed to the existing one doing a Loan Modification.
There also may be instances where the homeowner is in a financial position to make up the deficit in cash themselves in order to refinance the home.
Hit your mortgage broker up for details on this!