mortgage help/refinancing

gerger1977 · Joined: 25 Jan 2008 Posts: 1 1.48 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%. 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?

If I cannot do the above, will I be able to get a home equity loan being that I have 2 mortgages already??

Thanks for any help.

chrisburns · Posted: Sun Jan 27, 2008 5:05 pm Post subject:

You should be able to get rates of 6% on a 30 year fixed FHA refinance. You can cash out up to 95% of the value of the home.

edited per forum rules

Caron · Posted: Mon Jan 28, 2008 12:17 pm Post subject:

Yes Chris, 30 year FHA refinance can be an option for Gerger.

Combining two loans into one is ok but why do you want to go for a home equity loan again? I don't think it s a wise financial decision, though it's just my personal opinion.

If you can get a cash-out refinance worth $280K, then 30K would remain after the two loans are paid off. This 30K can be used to purchase the business and if you can somehow arrange for the remaining 10K, either from your savings or any kind of investment, then that will be great.

"If I cannot do the above, will I be able to get a home equity loan being that I have 2 mortgages already??"
This won't be easy because you'll already have two loans to manage. Your finances and assets would count a lot if you are going for a home equity loan again.

good luck

All times are GMT - 7 Hours

Page 1 of 1