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Net Tangible Benefit Form Requirements by State

Net Tangible Benefit Form Requirements by State

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hi there did you know that in most states it is required to fill out a net tangible benefit form having the net tangible benefit rule in place ensures the borrower that a refinance is in their best interest the net tangible benefit may vary depending from state to state in colorado for example the net tangible benefit form is required both on purchases and refinances on an fha streamlined mortgage it is required that there is at least a 5 savings in your payment so for example if the borrower's current payment is 2500 a year a month and you reduce it to twenty four hundred dollars a month this will not pass it needs to be a full five percent or 23.75 a month so when you are structuring a loan as a no cash out refund refinance the net tangible benefit will show your borrower their monthly savings it is always best practice to see when the break-even point is when you are including the closing fees which will increase the principal balance from their current balance so by showing your bo

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