mortgage help/refinancing

Guest 0.10 Dollars($)

Hey all,

So I have a complicated series of questions regarding refinancing and home equity loans. Any help would be greatly appreciated. So here it goes.

Bought my house in May 2005 for 250K (100% financing) Have 1st mortgage for 200K with 5.875% interest. Second mortgage (Home equity loan) for 50K, which was originally a line of credit (variable rate) that was refinanced in 2006 with fixed 7.563%When you did the refi...did you take cash out? . My house is now worth somewhere around 275-280K. I would like to lower my monthly payment by combining both loans into one. I also am looking at buying into a small business for 40K and would like to see if I could do the above and then take home equity loan for 40K.

Does anyone know if the above scenarios can be done and what the best way to go about it is? You need to do a rate and term refi o nyour first and second....Then after that closes and funds get a second mortgage.......
If I cannot do the above, will I be able to get a home equity loan being that I have 2 mortgages already?? I'm not aware of anyone doing third position mortgages
Thanks for any help.

ckalvesmaki · Posted: Sat Jan 26, 2008 6:57 am Post subject:

Please see my commnets in your post

lisascherzer · Joined: 04 Jan 2008 Posts: 749 0.10 Dollars($)

Hi Gerger,

If you have good credit then you can combine the two mortgages into one mortgage and can go up to 95% of the value. Based on what you feel the home will appraise for, it looks like you should be ok on the refinance of the two mortgages.

A 30 year fixed rate mortgage is right around 5.50% with no points depending on your credit score. So with paying off that second mortgage, I am sure there will be a savings.

As far as the second mortgage goes, it looks like you may not qualify for more than 20K since most lenders will not let you borrow more than 100% of your homes value. Hope I could help.

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