It’s not unusual these days to have a lender request a “letter of explanation” from a home buyer or someone who is buying or refinancing their home. A letter of explanation (or LOE) is often used to help provide more information to the underwriter or lender based on information that is disclosed on an application or credit report. LOE’s may address anything from gaps in employment to inquiries on a credit report and is intended to help explain or add support to the transaction. If a borrower has had an extenuating circumstance and is trying to have an exception made to an underwriting guideline, they may be asked to write a LOE.
Refinancing isn’t just about lowering your rate — it’s about improving your overall financial strategy.
In this section, you’ll find educational resources explaining when refinancing makes sense, when it doesn’t, and how to evaluate your break-even point. Whether you’re considering a rate-and-term refinance, cash-out refinance, HELOC, renovation mortgage, or reverse mortgage, understanding the numbers and long-term impact is critical.
Topics covered include:
- “Should I refinance?” scenarios
- Cash-out strategies for remodeling or debt consolidation
- Home equity planning
- Recasting and re-amortization
- Renovation loans and ADU financing
- Refinancing with a second mortgage
My approach is always low-pressure and analytical — we look at the math, your goals, and your timeline before making any decisions.
If you’re a homeowner in Washington State wondering whether refinancing could improve your situation, start here.
Should You Refinance Now or Wait for the New HARP Program?
December 20, 2011 by Leave a Comment
Please visit our up-to-date Refinance Guide for Homes in Washington.
Today someone body found my blog by googlineg: “Should I refi now or wait for the new HARP program“. This is such a great and timely question that I thought I’d take a few moments to answer. [Read more…]
Refinancing when you have an existing Second Mortgage or HELOC (Updated for 2026)
December 15, 2011 by 62 Comments
Refinancing with a HELOC or Second Mortgage (2026 Guide)
One of the most common refinance questions I’m hearing right now is:
“Can I refinance if I already have a HELOC or second mortgage?”
Short answer: Yes — but how it works depends on your situation.
If you have a home equity line of credit (HELOC) or an existing second mortgage, refinancing is absolutely possible. It just requires a little more strategy.
After more than 25 years helping Washington homeowners with their mortgages, I can tell you this: [Read more…]
Private Mortgage Insurance Saves the Day for Refi’s with Low Appraisals
October 5, 2011 by 1 Comment
Recently a couple of my clients returned to me to refinance their Washington homes wanting to take advantage of the current historically low mortgage rates. The biggest gamble with a refinance is what the appraised value comes in at. We know at the beginning of the application if someone is qualified based on their income and what their credit scores are. We wait to until we receive the appraisal to learn what has been decided to be a current value based on what other like homes in the neighborhood have recently sold for. If a home’s loan to value is over 80% based on the the appraised value, the home owner has options depending on what the actual loan to value is. [Read more…]
