It rose from $800 to $1450 (!) and is going to rise again in November. It is my second loan on the house (80/20). Any tips on what I could do? Is there a way to change this HELO now to a cheaper lender? I appreciate any help.
2007-04-29 04:02:28 · 4 answers · asked by tryingtosavehome 1 in Business & Finance ➔ Renting & Real Estate
The Heloc was always a variable rate loan, what you need to do is see if there is enough equity in the house to refi the second loan into a fixed rate loan with the bank agreeing to subordinate financing. The rate on a fixed second will be high, but at least it will be fixed. Check with your lender to see if they think there is room for you to do this, otherwise you will have to sit tight and wait for the equity to get out of the current second loan. Good Luck!
2007-05-02 05:14:23 · answer #1 · answered by novastarbanker 3 · 0⤊ 0⤋
As already stated, your best option is to re-finance the loan. Either just the HELOC or the entire house. HELOC's almost always have an adjustable rate, so combining both loans into one fixed rate would be best if you intend to stay in this house for more than 5-7 years. If you have lived in the house for a few years you should have enough equity to re-fi the both loans into one, 90%LTV or so with "Lender paid MI".
The best place to start would be your local bank. Ask them what they suggest but don't do anything until you've spoken with a Mortgage Broker as well. Banks typically have very few options, while Brokers will have many more programs for you to choose from.
When shopping for a loan always make sure to watch ONLY interest RATE and COST (including 3rd party fees). APR is far too easy to play with. Seeing the hard dollar costs and associated interest rate is what you need.
Make sure that you state;
I would like a rate quote for MY specific scenario (credit, employment, etc.) including a GOOD FAITH ESTIMATE showing all costs , 3rd party included.
This will ensure that you are shopping apples to apples.
2007-04-29 04:44:48 · answer #2 · answered by Tyler M 2 · 0⤊ 0⤋
The ability for the lender to make this change were most likely in the agreement you signed.
About all you can do is look around for another lender who'd give you more favorable terms.
Good luck.
2007-04-29 04:20:33 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
You have till november to find a new place and pray for an earth ,quake fire, your the return of Christ.
You ship is sinking you need to ride it out till you have no choices, or maybe sink it faster on your terms.
http://www.breakingbubble.com/
2007-04-29 06:01:50 · answer #4 · answered by Anonymous · 0⤊ 0⤋