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jmmathis645 · Joined: 07 Nov 2007 Posts: 2 1.78 Dollars($)

i am loking at consolidiating a LOC, car loan, 401k loan into a 2nd mortgage. home value 165k, bal 88k, i want to consolidate 32k into a 15yr loan with no prepay pen is this possible?

jenkin7 · Posted: Thu Nov 08, 2007 4:52 am Post subject:

Hello Jmmathis,

Do you have a first mortgage on your property?

If the LOC, car loan and 401k loan is 32k and you have 88k balance in mortgage, then you will have to get a new loan of about 120k. If the equity in your home is 165k, then you may get that.

But you have to shop for lenders to get a reasonable rate depending on your credit score.

jmmathis645 · Joined: 07 Nov 2007 Posts: 2 1.78 Dollars($)

i do have a 1st mortgage

jameswells · Posted: Thu Nov 08, 2007 10:06 pm Post subject:

You shouldn't have to put it into one note (or refinance your first mortgage) unless you have rough credit.

They key term for you to understand here is: LTV or Loan to Value

Most lenders want to stay under the "magic" number of 80%LTV. So, if your home is valued by the lender at 165k...80% is 132k. You state you owe 88k on the first, which leaves a difference of 44k you should easily be able to borrow against (provided your debt to income ratio and credit are also good). You will get a higher interested rate on a 2nd mortgage or HELOC than in you refinance your 1st mortgage with the new amount.

My advice: shop around. Check with 2 or 3 lenders (not brokers) and put in an application. With basic information and pulling your credit, they should be able to tell you what they can/can't do for you.

jenkin7 · Posted: Fri Nov 09, 2007 5:02 am Post subject:

Hello Jmmathis,

Even I agree with James. Refinancing your first mortgage is a better option because your rate of interest will be lower in this case than a second mortgage.

Guest

james, why do you say not to shop with brokers, after all brokers have contacts with nationalised lenders, so there' ll be a variety of loan programs from which a person can choose the one he prefers.

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