Combine 2 mortgages into one

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Post Posted: Mon Nov 26, 2012 12:52 am    Post subject: Combine 2 mortgages into one
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Is it possible to combine two mortgages into one? I have a mortgage on my house and my mother’s home doesn't have a mortgage but just a loan being repaid monthly but at a high interest rate. I would like to either combine my mortgage with her loan which is about 30k and my mortgage about 70k. Do you think this is possible?
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Icon Mini Profile Niicss
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Post Posted: Mon Nov 26, 2012 2:26 am    Post subject:
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You cannot combine two separate mortgages on two different properties into one. None of the lenders will agree to such a deal
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Post Posted: Mon Nov 26, 2012 8:39 pm    Post subject:
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Hi Guest!

Welcome to forums!

I agree with Niicss. It is not possible to combine two separate mortgages on two different properties into one. As there are two different collaterals, the lenders will not be ready to merge the two loans together.

Feel free to ask if you've further queries.

Sussane
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Post Posted: Fri Nov 30, 2012 6:05 am    Post subject:
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No, you cannot merge two different mortgages on two properties. This is because you must have taken the mortgage loan by keeping something as collateral. As such, the lender will not agree to combine these two loans into one.
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Post Posted: Fri Nov 30, 2012 6:06 am    Post subject:
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No, you cannot merge two different mortgages on two properties. This is because you must have taken the mortgage loan by keeping something as collateral. As such, the lender will not agree to combine these two loans into one.
Icon Mini Profile marylandmortgages
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Post Posted: Fri Nov 30, 2012 6:44 am    Post subject: Combine 2 mortgages into one
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My colleagues are correct, "blanket mortgages" are a thing of the past. One possible solution, however, would be to have Mom take out a HELOC (Home Equity Line of Credit) on her home. Since she owns the property Free & Clear, she shouldn't have any problem, provided she qualifies. A couple of things about HELOCs that are important to know: 1. The rates are based on an Index (usually the Prime rate) PLUS a Margin (1/2 - 1 1/2 %). So,the rate can and will adjust upward, however it will will be a low rate to start, and will adjust upward very slowly (Prime has done nothing but drop over the last 5-years - but can't go much lower) Since the note she wants to pay off is at a high rate, and probably amortized over a short period of time, she is likely to save alot of money, just make sure the Note she wants to pay off doesn't have any pre-payment penalty. 2. The minimum payments on a HELOC are usually Interest Only, but she will want to pay off the principle, so she should pay the HELOC at a pace that is comfortable and affordable for her. 3. there are normally ZERO closing cost, provided she keeps the HELOC for a certain period of time, usually 3-years. 4. The interest may be tax deductible, check with a CPA. 5. it's always a good idea for disciplined homeowners to take out the max. HELOC amount. it is a safety cushion, and your mom will only pay interest on the amount "drawn" on the HELOC, not the HELOC limit. This way, if she is facing a large, necessary, and unexpected expense that she cannot cover with savings, she can use some of the remaining undrawn HELOC amt. to cover the expense, or any emergency.

If Mom, can't get a HELOC on her own, perhaps you can do the same on your home, and pay off her high interest debt.

If you decide to take this route, check with some of your smaller local banks, credit unions, etc. they often have the best terms out there. Also, feel free to contact me with the terms any lending institution Is offering you, and I'd be happy to translate it in English for you. Good luck. It's a nice thing you are doing to help your Mom.
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Post Posted: Sun Dec 02, 2012 7:48 pm    Post subject:
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Thanks for sharing your opinion Mike!! Smile Your detailed answer will definitely help the poster to a large extent!!
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