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Merge two home loans

We have two home loans. Bought the home during peek time (2006) for 388,500. Mortgage one ~300,000. Mortgage two ~50,000. Paid 5% down. Paying both on time never defaulted and have very good credit. The house though now has decreased about 100,000. Is there any way or any bank that will help us merge the two loans into one. We are able to pay but want to have one loan payment vs two. by Rates_910_550 from Iselin, New Jersey. Dec 15th 2011 Reply


Nick Fratini (nfratini)
#5 ranked lender in Pennsylvania - 15 contributions

Hello, Are you living in one of the properties you are looking to hold the mortgage on? FHA allows you to go up to 85% Loan to value as a cashout refinance if you are living in the one you would want to refinance. The issue that you are running into seems to be a value issue. If you owe more then what the house is worth right now, you will not be able to refinance the two loans into one.

Dec 15th 2011
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Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 1,823 contributions

In order for you to be able to refinance and combine the two mortgages into one new one, you would be required to have positive equity. Based on the info you provided, if your home is worth $100k less than you paid for it and you only put down 5%, you are upside down and combining the two mortgages is not possible. Fortunately, the revamped HARP program will likely allow you to refinance the existing first mortgage into a lower interest rate which could significantly lower your monthly payment. Contact a local Mortgage Banker/Broker and not one of the big banks. Generally those you will talk to at the big banks are mere order takers. You want to work with a Mortgage Originator that has been Trained, Tested and Licensed to assist individuals like you in identifying the opportunities available to you. Make sure you check out your selected Originator at www.NmlsConsumerAccess.org.

Dec 15th 2011
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

Outside of a rich uncle who will lend you what you need to satisfy both mortgages, you cannot combine them at this time. You can however refinance the first mortgage at today's lower rates. The Current HARP program allows you to refinance up to 125% of your homes value, and even though you fall within that Loan to Value, My suggestion is to wait for HARP 2.0. The program details have been released, however the lenders have not come up with their individual programs. We know within a 2 months there will be lenders who will release their programs, but until then, I suggest you contact a local mortgage broker, not a bank and start your application with them. They will be up to date on the latest details, and will be able to match your particular scenario to the right lender... WilliamAcres.com

Dec 15th 2011
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Thanks all!! @nfratini this information is only for one home. @William: so this harp program 2.0 is going to launch in two moths is different from the one now? And if so how is the harp 2.0 any different? And should I call my bank to ask questions about the program now? Or wait

Dec 15th 2011
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

Yes the current HARP program is limited to 125% Loan to Value, however the lender charges a premium to have such a high LTV.. under HARP 2.0, there is no appraisal required, and LTV is not an issue.. Also, the lenders are restricted to how much of a premium they can charge for high risk borrowers. This all translates to a lower rate then what's available today if your LTV is 125%. I would not recommend calling your bank. Sad to say, they are the least educated on upcoming programs. Contact a local mortgage broker... he is licensed, educated, and current on all lending programs. WilliamAcres.com

Dec 15th 2011
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Thank you very much!! Greatly appreciated!! :)

Dec 15th 2011
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Does anyone know the eligibility requirements for the harp program because we refinanced on June 4 2010. Would we be qualified? Also is the making home affordable program and the harp program the same thing?

Dec 15th 2011
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