You can refinance the second loan if you are going to get better rate than what you have right now.
But as you are saying that the condo's value has appreciated you can also remove the second loan by combining both loans into one to one equaling 80% LTV.
Thanks
But as you are saying that the condo's value has appreciated you can also remove the second loan by combining both loans into one to one equaling 80% LTV.
Thanks
hi norman,
i too agree with nielsen. let me give you an example to give a better idea. if your condo's value was $500,000 and now it has 21% more value, its present value is $605,000. your two mortgages were for $400,000 and $50,000.
for its present value of $605,000, the condo can be refinanced by combining both the loans and getting a single loan to equal 80% ltv, the amount totaling $484,000, more than the value of existing two loans. it would be better as you will be able to get a single fixed loan and remove the second mortgage.
what it means that you would be able to save more by getting a fixed loan by being able to lower monthly payments and also reduce the interest amount you need to pay over the full term of the loan. if you compare the full term cost of having both first and second mortgage and a single mortgage you will be able to get a better picture of the savings it could result.
i too agree with nielsen. let me give you an example to give a better idea. if your condo's value was $500,000 and now it has 21% more value, its present value is $605,000. your two mortgages were for $400,000 and $50,000.
for its present value of $605,000, the condo can be refinanced by combining both the loans and getting a single loan to equal 80% ltv, the amount totaling $484,000, more than the value of existing two loans. it would be better as you will be able to get a single fixed loan and remove the second mortgage.
what it means that you would be able to save more by getting a fixed loan by being able to lower monthly payments and also reduce the interest amount you need to pay over the full term of the loan. if you compare the full term cost of having both first and second mortgage and a single mortgage you will be able to get a better picture of the savings it could result.
Hi Norman,
I think you can refinance or pay off the higher interest loan by taking a new loan. Then, you will be left out with two loans - the first mortgage and the new loan. But you can only benefit from the refinance if you are able to secure a low rate of interest compared to that of the higher interest loan.
In case, you are interested to know more about Refinance , go through our section on this topic.
Thanks,
Caron.
I think you can refinance or pay off the higher interest loan by taking a new loan. Then, you will be left out with two loans - the first mortgage and the new loan. But you can only benefit from the refinance if you are able to secure a low rate of interest compared to that of the higher interest loan.
In case, you are interested to know more about Refinance , go through our section on this topic.
Thanks,
Caron.
Yes you should -- contact me -- I'll be happy to review the many options to you.
Give me a call
wmoten@topdot.com
561-886-5367
wmoten@topdot.com
561-886-5367