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val
Guest
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 Posted: Wed Mar 18, 2009 4:10 am Post subject: Trying for a non-jumbo refinance |
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| We built a new home in 2007 which appraised for 1.3 million in 11/08 - along with the sale of two other homes plus savings we have our mortgage down to $554K. We have a HELOC for $300K and are using about $32K from it. I was wondering if it is possible to pay down the mortgage with the HELOC so the morgage is no longer a Jumbo sized loan (down to $417K) so we can refiance and take advantage of the lower interest rates out there. Is this an option worth pursuing? Thank you! Val |
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 gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 7405
Location: bloomfield, ct
62.63 Dollars($)
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| Posted: Wed Mar 18, 2009 6:55 am Post subject: |
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val, that would seem to be a viable solution. let's just say that your property value has declined by 13% to $1 million. your loan to value ratio would be 42%, and your combined loan to value ratio would be less than 60%.
assuming that your home equity lender would be willing to resubordinate, i think you've got a good plan.
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George M. Akerley
Loan Consultant
860-221-5044 |
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eric1
Community Experts
Joined: 04 Jan 2009
Posts: 1172
175.80 Dollars($)
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Jessica
Community Mentor
Joined: 08 Jun 2004
Posts: 814
Location: OHIO
195.97 Dollars($)
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| Posted: Sun Mar 22, 2009 9:04 am Post subject: |
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Yes of course Val, if you think it'll be easier for you to refinance a non-jumbo loan, paying down the Heloc is no doubt an option worth considering. I suppose you have plans to stay in your current home for quite a good time so that you can offset the closing costs paid for the refinance with the savings due to low rate.
Regards,
Jessica.
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http://jessica.mortgagefit.com/ |
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