You will know precisely how much of a loan you’ll be able to get, thereby directing your search to homes that fall in your pre-approval budget. Essentially, refinancing loan is thought to be a new first mortgage, while the equity loan is called a second mortgage. The precise amount of the refinancing loan will be different than the quantity of the original mortgage, because it’s going to select the appreciation under consideration. After five decades, any restrictions against acquiring a loan disappear. FHA insured loans are a form of federal help and have historically allowed lower income Americans to borrow money for buying a home which they would not otherwise have the ability to afford.