Compare Mortgage Quotes

cash1982 · Joined: 19 Nov 2008 Posts: 2 1.88 Dollars($)

My house is currently valued at 199,000. I owes 147,700 on my existing 30yr fixed rate mortgage.

I want to refinance 109,000 for 15yrs fixed rate and also take out a 2nd mortgage as a HELOC of 50k for the remainder of 38,700.

The total value of the two mortgages is 147,700 and my 80% ltv of 199,000 is 159,200. I don't understand why they can't do this can some one please explain to me. The mortgage company could not. All they told me is that it was considered a cash out and you can't do that in Texas.

shayneroy · Joined: 12 Nov 2007 Posts: 51 21.08 Dollars($)

Hi Cash,

Per Texas A6 law, you can't exceed 80% LTV on a Refinance Cashout transaction. Now, what you are trying to do is Refinance your first -$109,000 and take a HELOC for 50,000 that will consolidate the second of $38,700 and leave you with $11,300 cash in hand. That implies, the total of $159,000 i.e. 80% CLTV.

Looks like your mortgage company was not able to understand or if you have already done the appraisal with them, the appraisal didn't turn out to be $199,000 because I don't see a problem why you can't go ahead with your plan. It doesn't seem to be a problem to me, try explaining them again about it. Also, find out what your appraisal came back for (If you did an appraisal with them)

Good Luck!

Jessica · Posted: Thu Nov 20, 2008 5:15 am Post subject:

Hi cash,

It's true that in Texas, you can't go for a cash out refinance for more than 80% Loan to value ratio. I'd agree with Shane here. Perhaps the appraised value didn't come out to be 199,000.

Now let me know whether you intend to take $109,000 as cash-out for the first mortgage? If that is so, then your total mortgage amount would come out to be = $109000 + 147,700 + $50,000 = $ 306700 which is much higher than 80% LTV. So, probably that's why the lender has denied the offer.

Regards,

Jessica.

cash1982 · Joined: 19 Nov 2008 Posts: 2 1.88 Dollars($)

I owe 147700 on my current mortgage house is valued at 199,000.

I want to refinance the 147,700 and have it payed off. Then I have one loan I will call them the 1st mortgage and 2nd mortgage (HELOC).

1st 15 year @ 6% fixed rate - $109,000
2nd(50K HELOC)- $38,700

Which leave me $11,300 avaliable on my HELOC

109,000+38,700=147,700

80% of 199,000=159,200

I actually come in under the 80 by (159,200-147,700=11500)

I am not taking any money out as cash I just want to open a HELOC so I would have easier access to my equity.

The only thing I can think of is that they are both falling under the A6 law about not have to cash out loans at the same time.

jerry · Posted: Fri Nov 21, 2008 4:20 am Post subject:

Hi cash!

As far as I can understand, you are paying the $38,700 towards the second mortgage. In that case, you will be left over with $11,300 and $109,000 which comes up to $1,20,300. With this you cannot pay off the $1,47,700. You need to give some extra cash towards it. However, if you add $109,000 and 50k Heloc, then its comes within 80% LTV. It is surprising why the lender is not offering it to you. I guess, you should talk to the lender once again.

Thanks,

Jerry

Guest

I just learned from a website that in Texas, the borrow is limited to 50% FMV for a HELOC as opposed to 80% of FMV for a home equity loan. The rates are much lower for a HELOC, but the amount one can borrow is also much less.

Property State:
Property Type:
Credit Rating:

Company	Loan Type	APR	Est. Pmt.
				Go
				Go
				Go
				Go
				Go
				Go

All times are GMT - 7 Hours

Page 1 of 1

Compare Mortgage Quotes

Refinance with piggyback HELOC in Texas?