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Help with conventional loan adjustable 279.000 and 2nd fixed 67.000 home appraisal 293.000 considering combining. credit good.

by kathymoultrie285 from , Alabama. Sep 1st 2014 Reply


Chuck Young (ChuckY)
#18 ranked lender in Alabama - 12 contributions

What is the rate on the 2nd? Since you are underwater on an adjustable rate first you might be able to qualify for a HARP 2.0 fixed rate loan and paying off your second. Please advise. We are a local AL licensed lender and will be happy to assist. My phone # is 205-910-5698.

Sep 1st 2014
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,225 contributions

Kathy, you will not be able to combine the two mortgages until you have sifficient equity in the home - right now you owe more than it is apparently worth. You may still be able to refinance the 1st if the current mortgage is HARP eligible (must have closed generally before June1, 2009 plus meet some other criteria). I or another qualified lender would be happy to look it up for you - or you can check yourself on the FNMA and Freddie websites.

Sep 1st 2014
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Dave Metsker (DaveMetsker)
#37 ranked lender in Oregon - 2,317 contributions

As others have said, you can not combine the first and the second mortgages.

Sep 1st 2014
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Jericho Cherry (Jerichocherry)
#58 ranked lender in Virginia - 1,107 contributions

I agree with the others.

Sep 1st 2014
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,933 contributions

You cannot combine both loans into one. All lenders have a Loan to Value (LTV) and a Combined Loan to Value (CLTV) requirement. For most, it's 95% or lower. if your home is worth $293K and you owe $346K, then your at 118% CLTV, which is much higher than allowed. You might be able to refinance your first mortgage (depending on your existing loan) but your 2nd loan will have to stay in place and they would need to agree to a re-subordination agreement. To find out for sure what your loan options would be, try contacting a LOCAL mortgage broker and apply with them. By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Sep 2nd 2014
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Chuck Young (ChuckY)
#18 ranked lender in Alabama - 12 contributions

I stand corrected. The second would have to subordinate to the new 1st due to your out of equity position. Your existing first must be a Fannie or Freddie loan to go HARP but with rates eventually rising and the future of HARP uncertain might not be a bad idea to re-do the 1st to ensure the payments in the future remain stable.

Sep 1st 2014
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