100% LTV cash out refi?

BikerBassist · Joined: 04 Mar 2009 Posts: 6 3.23 Dollars($)

home value appx $129,000

First mortgage balance $71,751. (7%) 30 year mtg, currently in 11th year

Second Mortgage balance is $43,700 (9.25%) 20 year note we are in 3rd year

Have a credit card I want to pay off that has appx $14,000 balance.

I'd like to refinance into one 15 year fixed note if possible. ??? is that possible.?? or, just refi my 2nd to include the cc debt?

my fico is appx 660. wife's should be about the same..640 to 660???

Any ideas, or help?

eric1 · Posted: Wed Mar 04, 2009 5:58 pm Post subject:

If you can find a 100% LTV cash out someplace, then please let me know. I think you may have an easier time finding "bigfoot".

I would focus on trying to refinance your existing loans to more reasonable rates. Your monthly savings can be used to knock down that credit card blance.

gmakerley · Posted: Thu Mar 05, 2009 12:12 pm Post subject:

from what i've read and heard over the years, you simply have to be in the right place at the right time to find bigfoot. honestly, i think it's going to far, far easier to find him (her?) than a 100% ltv cash-out refinance.

BikerBassist · Joined: 04 Mar 2009 Posts: 6 3.23 Dollars($)

http://bloggingexperiments.files.wordpress.com/2009/01/patterson_bigfo ot.jpg?w=248&h=300

I FOUND HIM/HER !!

so... should/can I refinance my 1st mtg to $86,500 for 15 year fixed, or should/can I refinance my second for $58,000 for 15 year fixed? or will nobody out there do that.. ??

Thanks ya'll.. I appreciate the humor and the help.

gmakerley · Posted: Thu Mar 05, 2009 12:35 pm Post subject:

see??? i told you!

i think eric was suggesting you refinance each of the two mortgages and leave the unsecured debt alone. interest rates are much more favorable than the 7% and 9.25% you're paying on those now. and his other suggestion was to use the savings from your reduced payments on those loans to help you in reducing your credit card debt.

i have to agree with eric...we have a pact, after all.

gmakerley · Posted: Thu Mar 05, 2009 12:35 pm Post subject:

oh yeah...that last line was a joke.

BikerBassist · Joined: 04 Mar 2009 Posts: 6 3.23 Dollars($)

ya'll with your "pact" geez!

O.K... so thanks a lot for not giving me the answer I want. I'm making larger payments to the CC debt. but even so they've upped the % rate and it's just plain robbery. That's why I was hoping to take care of it faster. At current progress, it will take me about 24 months to get it knocked out. I was paying extra towards my mortgage(s) but quit and started sending it all to the CC.

So.. I guess I need to keep looking for bigfoot, or... see about refinancing my mortgages with someone that won't roll a ton of fees into it.

gmakerley · Posted: Thu Mar 05, 2009 1:13 pm Post subject:

in all seriousness, i thought eric's suggestion made more sense than anything else. here's another thought, though: do you have a credit union or a local bank that might be willing to float you a personal loan for the credit card balance, paying it off and giving you a rate of mid-teens or so? that's likely much better than credit card company rates these days, and i still think you'll do very well with a refinance of the other two (maybe into one fha loan that goes to 95% of the value of the home).

BikerBassist · Joined: 04 Mar 2009 Posts: 6 3.23 Dollars($)

I'll see what I can find out about a personal loan. Thanks.

One note in place of my current 1st & 2nd would be a nice improvement. Those two together are actually only 90%, but I guess I need to leave room for fees, so it would run between 90 and 95%. Ok.. thanks.

eric1 · Posted: Thu Mar 05, 2009 9:27 pm Post subject:

To chime back in...yes that is what I meant. Refinance the first two loans to a much lower rate thus decreasing your monthly housing payment. Then use that savings to pay down your credit card debt faster

Thanks George....where should I send the check? ha ha

Jessica

Hi bikerbassist,

I think getting a personal loan in order to pay off credit card debt and then refinancing both the mortgages will be a good decision. But if you can avail extra cash worth the credit card balance (needed to pay it off in full), it's better to just do a cash-out refinance combining both the mortgages.

You can use the Consolidation and Refinance Mortgage Calculator and find out how much you'll save by refinancing both the mortgages.

Regards,

Jessica

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