Refinance application #s/type?

[ShanetheMortgageMan]

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@Anonymous wrote:

"...any new debt is planned"? Considered/entertained?

Did you give this particular comment any thought as to being absurd?

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From the lender's point of view, if you are going to be taking out more debt then it may bring your debt ratios up to a level that you no longer qualify for the mortgage.  This is the #1 reason why borrowers are discouraged from applying for any credit during the application process, unless they like having to explain & document their actions.  It's not saying that you can't get approved if you choose to apply for other credit, it's just that you'll make the process more difficult for you and the lender.  Given that the biggest gripe I hear from my clients is that "it's so much paperwork", the advice I give out is aimed to reduce the amount of paperwork needed and still be able to qualify without getting an onslaught of questions from underwriting.

[Anonymous]

Very empowering contributions, refreshing.

Interestingly, at least for us, to engage in a 10 yr HEL, I would endorse, even insist, the funds be disbursed DIRECTLY to the CCCs. Never touch our hands!

In fact, last year, we were approved for a HELOC and I BELIEVE that was their policy. We ultimately declined only because use of funds, interest, estimated payments we wanted to begin immediately was too confusing, not including a catastrophic hospitalization.

2016 wasn't a good year, everything is now in recovery mode & we'd like stabilize our finances.

So, the plan is to wait for the refi, delay the HEL, unless it takes too long to close and obtain the HEL at the promo rate and I'd be happy to explain the purpose and method for disbursal.

Bad approach? It appears to be the responsible approach. CLTV goes up but, DTI way down. PLUS the tax benefit

[ShanetheMortgageMan]

Have you asked the lender who you are interested in getting the HEL with what their 1st mortgage rates are?  If they are to your liking, perhaps you can just do everything with them.

[Anonymous]

Yes, of course. That was a primary consideration. Too high and now the second will reset their promo rate as the refi lender likely before refi closing. It could be locked BUT, that requires another application.

At this point, it's all about timing. If the refi closing occurs expeditiously, we could have clear sailing but as we all know, that rarely occurs and can't be reliably forecast.

The relief for us now, is the info you and a few others have provided allows us to be comfortable and accept the process. Instead of confusion and second guessing.

[Anonymous]

Another quick question if you don't miind?

Curiously, in the currrent refi app, they neglected to request any retirement accounts. We have an unrestricted accout with six figures.

What effect would this have on applying for a HEL, any, good, bad?

[kc0039]

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@Anonymous wrote:

Another quick question if you don't miind?

Curiously, in the currrent refi app, they neglected to request any retirement accounts. We have an unrestricted accout with six figures.

What effect would this have on applying for a HEL, any, good, bad?

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It would look like you have reserves for your mortgage payment plus your HEL payment. It doesn't hurt to add, unless the bank requires that you have reserves.

[Anonymous]

Hmmm, very odd. Our current LO suggested we forego adding this retirement acct while it's back in underwriting? 

He did say it would enhance any approval but, wouldn't alter the current refi offer in place.

I presume it WILL assist approval for a HEL when the refi is closed?

[kc0039]

Yes it will make you look like a better candidate for the HEL