Question about mortgage refinance???

[MyFico_704]

I have a house worth about 260k today, basically what i paid for like 3 years ago.  I have 3 mortgages:

1 - 198k - 6.125%

2 - 48k

3 - 38k (HELOC)

Recent 30 fixed rates are at 4.875%.  I was wondering if I can refinance ONLY the first and leave the other be.  By doing that the home's value covers the first easily...

Is that possible?  For some reason I''m thinking all three need to be included in the refinance. In that case I can't do it since there's not enough equity.

Just an idea... Can this be done??

[cobaltnv]

It is my understanding that it can be done, but it is difficult. Once your first is paid off (in the refi) your 2nd becomes the primary mortgage. That is they are in first position to recover any funds should you go into foreclosure etc. In order to refi just your first mortgage you will need the 2nd and 3rd lien holders to agree to be subservient to the new first mortgage. This is possible to do. I would talk to a LO.

[Lel]

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MyFico_704 wrote:

I have a house worth about 260k today, basically what i paid for like 3 years ago.  I have 3 mortgages:

1 - 198k - 6.125%

2 - 48k

3 - 38k (HELOC)

Recent 30 fixed rates are at 4.875%.  I was wondering if I can refinance ONLY the first and leave the other be.  By doing that the home's value covers the first easily...

Is that possible?  For some reason I''m thinking all three need to be included in the refinance. In that case I can't do it since there's not enough equity.

Just an idea... Can this be done??

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It will be extremely difficult to refinance the first loan with those two other mortgages in place.  It is highly unlikely that the lenders of your 2nd and 3rd mortgages will subordinate their loans to a new first loan, because there is insufficient equity to support all 3 loans.

I have 2 mortgages.  Over a year ago, while I still had a little over 10% equity and the credit markets had not yet crumped, I tried to refinance my first mortgage alone.  It couldn't be done.

You could look into the Home Affordable Refinance (not modification) program for your first loan.  Did we have this discussion before?  Your story seems familiar.

[MyFico_704]

Thanks for the response... Here's what I forgot to ADD:

1st mtg - Wells Fargo

2nd/3rd - Wachovia.

So..Wells bought out Wachovia last year...

My thinking is since it will eventually be ALL Wells...that the refinance can be done.  I guess that would depend on the conversions..???

[Lel]

Yes, you might have better luck if all your loans are held by a single lender.  Getting a new loan for more than your home is worth is still going to be difficult.  The government plan allows for refinancing of amounts in excess of the current market value of the home, but I believe that the program considers loans individually - that is, you cannot combine 3 loans into 1.  Working directly with WF might yield better results.

[Anonymous]

I have heard alot of bad things about Wells Fargo's responses to requests for subordination, as well as their willingness to get into loan modifications/etc.

Good luck with them.

Also, just becuase it will eventually be wells fargo probably will not help in the near term.  Currently, they are still 2 separate banks as far as I know and still have 2 separate groups of people to deal with.  I could be wrong, but as of a month or so ago that was the case.

[Lel]

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mickie08 wrote:

I have heard alot of bad things about Wells Fargo's responses to requests for subordination, as well as their willingness to get into loan modifications/etc.

Good luck with them.

Also, just becuase it will eventually be wells fargo probably will not help in the near term.  Currently, they are still 2 separate banks as far as I know and still have 2 separate groups of people to deal with.  I could be wrong, but as of a month or so ago that was the case.

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This was the case with B of A and Countrywide.  Even though CW was bought out last year, management of their loans was handled separately for several months.  I think CW was only completely absorbed in the last couple months.