Posted: Wed Jun 25, 2008 10:44 am Post subject: How can you refinance an ARM to a fixed rate when the value
How can you refinance an ARM to a fixed rate when the value of your house has plummeted?
We purchased a $262,500 home in 2005 with an ARM, which had a fixed rate for 5 years. The down payment was made with a home equity line of credit with a current rate of 9% as a 2nd mortgage so it was 100% financing. Now that the market values have plummeted, our house is probably worth 225,000. Most mortgage companies require 80%ltv. We have no problem making our payments but yet still can not get a fixed rate because the LTV is over 100%.
Marty you should read the rules of the board they do not allow for direct solicitation..... OP anyone as desperate as Marty is going to take advantage of you even if they could help..
Your only real option is to see if the second will subordinate. If they will you may qualify for a fixed rate FHA loan. FHA is the only program that will allow a second to exceed 100% of the value of the home.
Have heard that FHA can finance up to 95 to 97 percent of the property value. So are telling about any special loan program Brian? It will be great help if you can let me know about it.
FHA will allow a Combined Loan to Value above 100%
This means that the second lender first has to agree to remain in second position (subordinate) while you refinance just the first. FHA will allow you to refinance the first up to 95% and they only look at the second as debt. They do not care about the second as long as they are in first position.
Posted: Fri Jun 27, 2008 5:58 am Post subject: RE: refinance first loan with cash out
Hi alevitre,
I think you are looking to get a combined loan refinance which isn't possible because you have earlier taken out 100% financing with 2 loans and the home value has declined. So, why don't you try to refinance at least the first loan with a cash out option so that with the extra cash you can pay off a certain part of the second mortgage? try out this option and talk to lenders about it.
alevitre
