refinancing if you have a 2nd mortgage ASAP?

Question

can I refinance a first morgage if i have a second morgage also? but i do not want to refinace the 2nd one?

Answer 1

i would definitely refinance the 2nd one...ESPECIALLY since it's usually has a lot higher interest rate

Answer 2

When you got the second mortgage it went through a process called underwriting. The underwriting is a risk analysis by the mortgage company. There were values, income, interest rates, and loan-to-value put into that analysis.

When you re-finance, those number can all change and the original assumptions are going to be different. If the new data all goes in the bank's favor (who has the second mortgage) then they might be ok with the re-finance.

If your income or assets have decreased, if your payment goes up or the appraisal (value of the house) goes down then these are the types of things that would slow/halt the refinancing.

We would need more details to see if you could do it.

good luck!

Answer 3

Subordinating the second is transparent to you; your lender, with whom you are refinancing, handles that as a part of their processing of your loan. The holder of the second will usually routinely approve the subordination of their loan as long as you are only doing a rate and term on the first. If you are trying to do a cash out refinance on the first, they will not re-subordinate.

Answer 4

It might be possible, but it is a much more complicated situation that you think. Check with a loan officer or mortgage broker. Your debt to income ratio might be an issue.

Answer 5

Yes... sit down with your loan officer and see which scenario makes the most sense. You can subordinate the second and leave the first alone... however if your home has depreciated you may be low on options. http://www.choicerealestate.net/