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Here is my question: would like to refinance my conventional 1st along with my HELOC which would be about 110% LTV. Credit score as of 11/7/11, is 800. Looking for 10 yr fixed to shorten my loans and lower my rates. Our 1st is a Fannie Mae and my husband is a military veteran Thanks!

by ccmnur_881_170 from , . Nov 10th 2011 Reply


Michael Rudnick (MichaelRudnick)
#44 ranked lender in Maryland - 1 contribution

You should be proud of both your credit score and your husband's military service.That being said, I am not aware of any program that allows you to go over-equity AND combine two mortgages. That would be considered a cash-out loan, and I am not aware of any cash-out programs that would allow you to go to 110% LTV.Perhaps another lender on this forum can help you. My advice would be to contact your current lenders and try to negotiate some sort of loan modification. Otherwise, you will probably have to wait a few years until your property increases in value. You can keep track of your home's value by periodically visiting www.zillo.com.ALSO, if you want to shorten the term of your loans, you can simply pay extra each month, above and beyond your required payment. Any extra money that you pay each month will be applied directly to the balance, and will shorten your term without the need for a refinance loan.I would advise you to pay extra against whichever lien has the higher interest rate.

Nov 10th 2011
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Linda Burek (lburek)
#139 ranked lender in Florida - 25 contributions

Thank you for contacting me. To my knowledge there are no programs currently available for 110% financing. This would be considered a cash out refinance, as you would be paying off your HELOC. If you had more equity another option would be to refinance your first mortgage and subordinate the second. You may qualify under the new HARP (Home Affordable Refinance Program) program coming out 11/15/11. I would suggest contacting your current first mortgage lender. Best of Luck to You!

Nov 11th 2011
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Janine Bodway (jbodway)
#4 ranked lender in Montana - 42 contributions

Currently there is not an option to refinance your 1st and Heloc to 110% loan to value. I would also advise more info to you on the new HARP Program coming out soon to see if that has options. You may however have the option to Refinance your 1st mortgage only and subordinate your Heloc. You can refinance the 1st up to 125% and unlimited Combined loan to value with the 2nd. You do however need your 2nd Lien holder to approve the subordination that allows you to refi the 1st. If refinancing the 1st provides you a substantial savings, you could use that extra to pay off your Heloc faster. Otherwise, you would need to wait until you could obtain an 85% loan to value to payoff 1st and 2nd to combine into 1 new loan. ( I do have a no PMI option on this as well ) jbodway@acceptancecapital.com

Nov 11th 2011
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Paul Benezra (PaulBenezra)
#50 ranked lender in Washington - 66 contributions

Yes, we have the program available, I would like to get more information. Can we set up a time to talk today.What is the best number to call you at? is the property in Washington State?Paul

Nov 11th 2011
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Thanks for the quick replies ...all very sound advice and very much in keeping with my research into the matter thus far. I was contacted by CHASE, the holder of my 1st and offerred a HARP for 85% LTV, but they could only offer it for the balance of our primary mortgage, no consolidation with the HELOC . Our HELOC is with USAA for fixed rate of 7.99%. Our 1st w Chase is fixed at 6% and has 11 yrs left.In your experience, have HELOC lenders been able to negotiate on lower rates +/or terms? If so, should I just move fwd with negotiating them separately, since there's no consolidating them ?

Nov 11th 2011
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

If your 2nd is willing to subordinate, you should be able to finance the 1st... but there is no lender that will do a first mortgage at 110 paying off a 2nd... WilliamAcres.com

Nov 11th 2011
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Did you get the equity line when you purchased the property or was is after you owned them? This makes a big difference in qualifying for a refinance. If the equity loan was part of the purchase transaction you may be eligible for a refinance.

Nov 11th 2011
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