Am I allowed to refinance my original mortgage and my home e

twoteachers561 · Joined: 28 Jan 2008 Posts: 1 1.35 Dollars($)

I have a mortgage from 2004. It's for $90K. We just took out a home equity loan for $30K. Now that the interest rates seem to be going farther down---can we refinance our first mortgage and combine it with my home equity loan into one mortgage payment?

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi twoteachers,

Welcome to the forum.

You can do it. Talk to your lender and see if he allows you for it or not?

Is your first mortgage a FRM or ARN?

Thanks,
Larry

banker0679 · Posted: Mon Jan 28, 2008 5:02 pm Post subject:

Really depends on the loan to value....most lenders will consider this a cashout refinance...and they may only go up to 90% of the value of the home.
FHA goes up to 95%
VA goes up to 90%

helping_user

Welcome Twoteachers,

I think you can refinance the first loan and combine it into an equity loan with one single monthly payments. Currently rates are comparatively lower especially those of fixed rate mortgages, so getting a good offer won't be that difficult if you have favorable financial situation and creditworthiness.

Thanks.

chrisburns · Posted: Tue Jan 29, 2008 6:52 am Post subject:

The answer is yes assuming your home appraises high enough to allow you to do so.

Most conforming guidelines including FHA state that if the equity line was acquired AFTER the initial home purchase then your refinance would be considered cash out even if you aren't receiving any cash in hand.

Conforming loans allow up to 90% LTV on cash out refi.

FHA allows 95% LTV on cash out refi.

There are several (Alt-A) lenders that can do 100% LTV on a cash out if it's your primary residence and you can fully document your income. Rates are likely going to be higher as will PMI.

bthahir · Joined: 05 Sep 2007 Posts: 36 13.22 Dollars($)

Yes that will be very good as the rates are good. I would like to give you a suggestion, you can take cash out refinance from your first mortgage and payoff both first mortgage and home equity loan, so that you will be paying only one loan at a time. I believe you can get a fixed loan for a better rate, if you have good score and stable income.

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