2007-05-19 06:46:34 · 7 answers · asked by BigDaddy 1 in Business & Finance ➔ Renting & Real Estate
In general, banks will not do a 1st mortgage with an LTV above 80%. You would need to have a second mortgage on top of the 1st one. There are some companies that will do this. However, this is highly risky for them so you would need to have great credit history, stable income, and probably some substantial assets.
I assume that you are getting a rate adjustment soon on your ARM or option ARM loan?
I recommend:
If you have to refinance, do a 1st mortgage at the lowest fixed rate possible. In the mean time, talk to another lender about placing a 2nd mortgage or equity line. Then you can refinance the entire loan you currently have. Note: it will be VERY difficult to get that second mortgage above 100% LTV.
2007-05-19 08:48:29 · answer #1 · answered by MBA Don 4 · 0⤊ 0⤋
That is a tricky question. There is what is called a short sale which is normally when the bank will accept less than full payoff to release thier lien because they are aware thier balance is more than the value of the property. Currently there are several banks that will do the same for a refinance. There are a few things they will ask to look at. First they are going to ask yo to give them a list of you current financial situation including copies of pay stubs and tax returns. in addition they will want you to list everything you pay on a monthly bais. This is because they are looking to see if you will be able to afford the remaining balance if they agree to release thier lien. They of course will not tell you that when you are talking to them. They will ask you for a hardship letter as well, if you currently have a variable rate loan you will want to use that as your reason for requestiong your current bank to take less than payoff to release thier lien. It is the mot common reason right now and banks know it is out of control. You also need to make sure that you have a loan officer working on your new loan that has some experiance in this, or it will not work. Banks are very well aware of the decreace in property values across most of the country right now and as a result, most have employees working for them that specialize in these type of transactions.
2007-05-19 16:00:59 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You may be able to get more than 100% financing, but it sounds to me like you are already over 100%. If you are looking to lower your interest rate from your current mortgage and not take out any additional cash, you may have an opportunity. However, loans exceeding 100% of value normally carry a higher interest rate than do those at 100% or less.
2007-05-19 13:53:58 · answer #3 · answered by acermill 7 · 0⤊ 0⤋
Let me guess, you had an adjustable that you went neg am on? Well, the government is trying to assist people in that situation, but, it might be hard pressed to find one.
2007-05-19 14:01:02 · answer #4 · answered by Anonymous · 0⤊ 0⤋
125% loans are possible,but not financially sound in a declining market
2007-05-19 13:49:25 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Dont over commit in a market like this...pare back your expenses rather than have more debt than equity
2007-05-19 13:55:13 · answer #6 · answered by Anonymous · 0⤊ 2⤋
Buy anything when you have money in your pocket enough to buy that. Do not sell yourself and be slave of your desires.
2007-05-19 13:53:22 · answer #7 · answered by Ravi Lohia 5 · 0⤊ 0⤋