refi questions

Guest 0.10 Dollars($)

bought home 04/2004 have 1st & 2nd
1st Loan Information:
30 Years Adj Rate Mtg
Original Principal Balance $694,000.00
Contractual Remaining Term 27 years, 8 months ARM Statement
Interest Rate 5.75%
Current Principal Balance $693,798.16
(bought thinking this was 30 yr fixed @ 5.625!!)
monthly payment now 3354.00

2nd Loan Information:
Current Principal Balance $129,811.29 Current Int Rate 10.500%
Original Loan Amount $130,100.00
First Payment Due Date 06/2004 Loan Type Home Equity Line
Maturity Date 05/2019
Payments this month 1137.00

Want to get 30 yr fixed loan. Home value is approx. $1.3 (Bend, Oregon)
Orig. loan was SISA Self-Employed... FICO's Wife 750 Husband 730 No lates or any dings of any type.

any thoughts? email drallez at yahoo dot com THANKS

Guest 0.10 Dollars($)

Hi,

Since you have already taken two loan programs and paying for them, so I think you may have problems in getting a third loan. Lenders hardly want to take risk in offering a third loan to borrowers.

Caron · Posted: Tue Sep 12, 2006 10:51 pm Post subject: RE: third loan or refinance?

Hi Guest,

It's not clear whether you need the third loan in addition to the two loans that you already have or if you are looking to refinance. I shall suggest that you refinance the home equity line of credit with a 15 year fixed rate loan as the credit line has higher rate of interest.

The current market rates on 15 year fixed rate loan is about 6.16% which is much lower than that on your line of credit. So, I guess it will give you some relief.

Paying monthly for two loans is financially sound than making payments for three loans in all. Also, if you can get a lower rate with the refinance, then nothing's like that.

Thanks,

Caron.

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