bridge loan??

[lucky70]

I am trying to avoid pmi. I am planning on buying a new home. I have a home that I own and have no primary mortgage on. I do have a small heloc balance (6,500) on it. They closed my heloc for some strange reason even though I have fico scores in the low 800s..... They wanted me to pay for an appraisal to keep my credit line open but I declined.

My question is can I apply for another heloc or home equity loan on my house by using an automatic valuation by a company and use that money to pay for my downpayment on a new home? I am trying to avoid pmi and get 20% downpayment. Anyone know of a company that may do this. I would use the same company for both loans.

Thank you all in advance for any help.

[Anonymous]

What type of loan are you applying for?  You would have to disclose the new debt and source of down, which under most loans would not be permitted.

[lucky70]

I wanted to get a 30 fixed conventional loan to avoid pmi. I know that before all the foreclosure mess you use to be able to do a bridge loan. I should have alot of equity in my home so I was trying to get the equity out to use to make a downpayment on another home.
So are you saying that you can't borrow a downpayment even though it is equity?

Thanks for your input. It is much appreciated. Anyone else know of anyone who tried to do this?

[Anonymous]

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@lucky70 wrote:
I am trying to avoid pmi. I am planning on buying a new home. I have a home that I own and have no primary mortgage on. I do have a small heloc balance (6,500) on it. They closed my heloc for some strange reason even though I have fico scores in the low 800s..... They wanted me to pay for an appraisal to keep my credit line open but I declined.

My question is can I apply for another heloc or home equity loan on my house by using an automatic valuation by a company and use that money to pay for my downpayment on a new home? I am trying to avoid pmi and get 20% downpayment. Anyone know of a company that may do this. I would use the same company for both loans.

Thank you all in advance for any help.

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I don't know about the bridge loan, but it sounds as if your Heloc was closed because of what I would guess as lowering property values.  If they wanted an appraisal to keep the HELOC open, it means they no longer believe your home is worth what the heloc was for, though if all you have is that $6,500 in the heloc seems as if there should be lots of equity.

[lucky70]

YES that is my point. I should have alot of equity. The comparables and zestimates etc in my area are about 75, 000-80,000 and the original heloc was only for $40,000 taken out in 2005 and NEVER even used until recently..

Thanks for your input and I appreciate any others.

[Anonymous]

Your Heloc was probably closed because it was not in use.  They want a new appraisal because you are basicly looking at starting a new one.

As far as down payment, very few places will allow you to use the heloc to pull money from.  Now, is you obtain a mortgage on the new property that automatically rolls the PMI off when you hit 80% equity then you could concievably put the mimimum amount down on a purchase, and once that was done, you could then take out a heloc on 1st property and pay down the second to under 80%LTV in turn dropping PMI. 

[lucky70]

Thanks. That was what I was afraid of.. Pmi seems like such a waste but I guess I will either have to wait it out and hope that mortgage rates won't go up further in the next couple of months or pay the pmi.

Has anyone heard if the feds say that they will keep mortgage rates around 5% at least till august 2009? Thanks.

[Anonymous]

The fed doesn't exactly set interest rates or control the market (although they do have a huge influence)  the is no guarantees of rates going up or down right now.  Form what I gather, rates have inched up recently back in the lower to mid 5s.  The thing is that all this cheap lending is likely to make for a expensive hangover down the road and once the Fed and the banks feel that the home market has stabilized and the credit market is running smoothly again, rates are likely to jump.  That could be 3 months and it could be 3 years.  Who knows.

[lucky70]

Thanks. If someone only had a crystal ball to predict the future on mortgage interest rates.
Low to mid 5s is still great compared to the interest rate I paid in the early 90s on my home. It was 7.85% and that was with very good credit!!! The economy was alot better back then of course. Clinton was president then and things were really looking good. Now? Not so good.
The amazing thing about my current homes value since I assume it has gone down is the property taxes haven't. I will definitely protest my next bill to see since the value has declined, why haven't the property taxes?

[Anonymous]

In alot of areas, property taxes are only adjusted when a property is sold/refinanced with the obvious exception to tax increases.  But alot of places do not re-evaluate property regualrly.