@Anonymous wrote:
Refinance Application in process. Would need expertise of everyone here to help me pls.
Current loan with Penny Mac:
Financed PMI(Paid)
4.375%
342,883
P: 507.67
Int: 1259.92
Ins: 64.08
Tax: 544.27
(with escrow account for ins and tax)
Total Monthly: 2375.94
New ref:
1st mortgage for $314,700 and a 2nd mortgage for $31,100 (line of credit)
I need to lock the rate today at 4.375%... Can someone explain to me why my rate would be the same?
The LO said my 1st mort will be roughly 1550 for 30 yrs and 2nd mort at 110$ for 10 yrs
Thank you in advance.
Do you mean it's the same rate on the first and the second? Can't say why they'd be the same, but it's a way to get up to 90% LTV without paying PMI (doing a first and second). What is the value of the property?
The second is Home Equity Line of Credit (HELOC) and they usually are interest only for the first ten years, then they amortize the principal over 15 or 20 years after that.
