Posted on: 06th Mar, 2009 04:13 pm
i currently have a 1st, 2nd and 3rd mortgage. when i got them, the balance of all 3 was less than 80% of the house value - no pmi. of course, due to the house market crash that is no longer the case. however, the 1st mortgage is way below the 80% house value and what i am considering is to refinance the 1st to a lower rate and possibly get a cash out that would put the 1st balance still way below the 80% house value. will the 2nd and 3rd loans prevent me from getting this cash out of the 1st refinance? both 2nd and 3rd are subordinate to the 1st and are from a different lender than the 1st.
Hi badermanzoo
I don't think you will face problem in refinancing the first loan provided if you have some equity on the property, good credit score and income. However, it would be better if you could refinance all the three loans into one. This will not only lower all your payments but you will have to pay off only one loan rather than 3 loans.
Thanks
I don't think you will face problem in refinancing the first loan provided if you have some equity on the property, good credit score and income. However, it would be better if you could refinance all the three loans into one. This will not only lower all your payments but you will have to pay off only one loan rather than 3 loans.
Thanks
In theory that sounds workable, but I have noticed very few lenders wanting to resubordinate right now. Your best bet would be to start with your lien holders on the 2nd and 3rd and ask if they will consider it.
I have had a few borrowers trying to do this recently that have ran into brick walls... but each lender is different.
Best of luck!
I have had a few borrowers trying to do this recently that have ran into brick walls... but each lender is different.
Best of luck!
You are not supposed to have three loans on your home. My guess is the third lender never ran a title search, otherwise you never would have gotten that loan. The refinance guidelines are going to change very soon. Keep reading this forum for updates. You may be able to do something soon, but dont expect to cash out any more.
