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2nd mortage refinance---Help please

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Anonymous
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2nd mortage refinance---Help please

Hello gurus please provide your valuable suggestions. 

Two year back @2007: 

1) Bought the home @450K.

2) First mortgage 80% @5.75 5/1 Interest only.

3)2nd mortgage 10% @7.50 15years balloon payment with National City

4)10% down payment. 

 

Now @2009:

1) Home value gone down slightly but can prove the original bought value.

2) Did the rate renewal for the first mortgage @4.50 5/1 Interest and principal payment.

3) So for paid approx 4k in the principal.

4) FAKO scores around 750

5) FICO scores around 720. 

 

Questions:

1) Am I paying too much interest on my 2nd mortgage?

2) What are my options or best available rates for 2nd mortgage refinance?

3) If I want additional living space (cost estimate 40K), can I get a loan for that? Do I have to combine this with my 2nd mortgage refinance?

 

 Advance thanks for your help.

 

 

 

 

Message Edited by ccWatch on 08-07-2009 01:24 PM
Message 1 of 3
2 REPLIES 2
Lel
Moderator Emeritus

Re: 2nd mortage refinance---Help please

Don't quite understand what you mean by you can "prove the original bought value".  Are you saying that you can prove that your home has not dropped in value?  Any lender who looks at refinancing is going to use their own appraisal, which may not be in line with what you think it might be.  And once a lender has decided on a value, it will be hard for you to change their mind.  I tried - with two different lenders - and was unsuccessful.

 

7.50% for a second loan is not bad.  You could do a lot worse.

 

Even if you are correct in believing that your home has maintained its value, it will be hard to refinance that second loan.  A lot of lenders won't go above 80% combined LTV anymore.  Ditto for a home equity line of credit, which some people use for for improvements.  Last year I had a hard time finding a HELOC lender who would go above 80% CLTV, and that was when the mortgage market was somewhat healthier than it is now. 

Message 2 of 3
DallasLoanGuy
Super Contributor

Re: 2nd mortage refinance---Help please

i doubt you can improve on that 2nd lien rate

 

Retired Lender
Message 3 of 3
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