my 1st loan 280,000 is a fixed rate 6.65. my second loan 74,000 (15 years fixed with balooon payment of 54,000 at the end). can i just refinance the second loan. or combine the two into one loan. which is better. i have no penalty, excellent credit, 6 months living in the house. thank you
2007-08-19 08:24:15 · 9 answers · asked by erika 2 in Business & Finance ➔ Renting & Real Estate
Either way the challenge would come at the appraisal. Chances are that you did an 80/20 to avoid pmi and get 100% financing. With the market the way it is, it's likely that the house will not appraise so the bank will not approve the loan. You may have to cough up a good chunk of change to get it done. I don't blame you for wanting to get that second loan off your back but it is going to be tough.
Sorry, I wish I had better news for you.
2007-08-19 08:47:39 · answer #1 · answered by Free Thinker 6 · 1⤊ 1⤋
It all depends on how much equity you have in the house. Since you have only lived there for 6 months, I wouldn't think you have much unless you put a large down payment on the house when you bought it.
Shop around and see what interest rate you can find. You are looking to borrow the 374K or even up to 380K with all the fees that the lender may put on you.
I would think that you are not applying for a sub-prime loan with the excellent credit. There is a good possibility even with today's financing cut back that you will find a mortgage company willing to back you.
good luck.
2007-08-19 08:37:45 · answer #2 · answered by Fordman 7 · 0⤊ 1⤋
Isn't 350K considered a jumbo or is it 400K? Anyway if it is considered a jumbo to combine the 2 forget about it even with excellent credit the marketing of these loans has vistually dried up.
2007-08-19 09:06:01 · answer #3 · answered by Anonymous · 0⤊ 1⤋
i would sit chilly onthe mortgages but consider paying a bit more every month to pay off the second i would consider paying an additional 100 in a seperate check and make a note on it apply towards principle. doing this with both loans will dramatically reduce the term you have yoru mortgage 30yr will pay off in 20-25
2007-08-19 08:50:15 · answer #4 · answered by beachlover 2 · 0⤊ 1⤋
The best thing to do is have a professional conduct a total cost analysis for you. They have tools that will be able to put together a program that fits your needs. Sometimes the best thing to do is nothing. I've been doing these for 6 years.
2007-08-19 13:08:45 · answer #5 · answered by The Smart One 4 · 0⤊ 0⤋
u can combine the 2 into one loan. www.OwnPartofTexas.com has some q&a. If u have any questions, you can probably find them there. Good luck, Bill
2007-08-19 11:13:38 · answer #6 · answered by Bill P 5 · 1⤊ 0⤋
I would shop to see what some lenders can do on the second , but more than likely your rate will be between 8.25-9% . IF that doesnt work for you I would try to combine them both ...You can get some low rates now and with the market declining rates will only get lower.
2007-08-19 08:41:22 · answer #7 · answered by WeLoan.Us 2 · 2⤊ 2⤋
I would wait. You have 15 years to worry about it. It isn't cheap to refi and the market may turn around by then.
2007-08-19 08:44:11 · answer #8 · answered by ? 4 · 0⤊ 1⤋
it is possible but will be very difficult to find a lender willing to do this. good luck
2007-08-19 08:32:46 · answer #9 · answered by Jan Luv 7 · 0⤊ 1⤋