Best option?

[Anonymous]

Next spring I'll need a loan of about $20-$25k to replace some bad areas on the exterior of my house, paint the exterior, replace the carpet inside-basically just restoration in nature.  I've only had the house for six years so I don't have much equity.  Would I be better off going to my mortgage holder for the loan since they essentially own the property and would want it in tip top shape or would I have a better chance going to the bank I do business with?

The loan would be paid in full in about five years when I retire.  I expect to continue to live in the house afterwards so a sale is not on the horizon.

[RobertEG]

How does the current appraised value of the property compare to your remaining mortgage balance?

Any creditor, be it your existing or additional creditor, will first look at that figure as an indication of their risk upon a default.

Your current mortgage lendor holds a lien on the property, and thus does not need to obtain an additional right to pursue a default.

A new lendor wont have that lien, and thus would be second in line to the first trust should the property go into default.

Legally, it would probably be less cumbersome to go to the holder of the first trust.