Posted on: 24th Mar, 2010 01:38 pm
My house is in Orange County, CA and I have:
First Mortgage
Fanny Mae owned (serviced by Citi), 30yrs Fixed at 5% with 328K balance
HELOC
Owned by my credit union, variable, Interest Only (currently at 3.25%) with $218K balance.
Both loans are about 3 years old.
The current value of my house is likely $550-$600K. I'm current on all payments and have good income and credit score (720-750 range).
I'm worried that my HELOC payments will sky-rocket when rates eventually go up and would like to roll everything into a first.
Can anyone tell me if I would qualify for a Fanny Mae Streamline to refi both loans into one? I'm aware I can do FHA, but I'm not big on the Premium and MI.
Thanks,
Henrik
First Mortgage
Fanny Mae owned (serviced by Citi), 30yrs Fixed at 5% with 328K balance
HELOC
Owned by my credit union, variable, Interest Only (currently at 3.25%) with $218K balance.
Both loans are about 3 years old.
The current value of my house is likely $550-$600K. I'm current on all payments and have good income and credit score (720-750 range).
I'm worried that my HELOC payments will sky-rocket when rates eventually go up and would like to roll everything into a first.
Can anyone tell me if I would qualify for a Fanny Mae Streamline to refi both loans into one? I'm aware I can do FHA, but I'm not big on the Premium and MI.
Thanks,
Henrik
i guess you have equity in your property. if you've equity in the property, then you would be able to get a refinance. moreover, your payments are current and you have a good credit score. i would suggest you to contact your lender and apply for a refinance.
Hi mortgagefit,
Just a couple of things regarding your refinance.
If you add both loans your total comes to $546,000.00. That gives about 4K for closing costs based the low end of your estimated value and probably would not be enough to cover the closing costs. In addition to that, you won't find a lender that will allow 100% financing. There is also the matter of whether or not the 2nd mortgage was a purchase money loan. If you opened the HELOC after you purchased your home, the new loan will be considered a cash-out refinance which will limit what you can do.
FHA will be your best option based on the numbers you've provided.
Just a couple of things regarding your refinance.
If you add both loans your total comes to $546,000.00. That gives about 4K for closing costs based the low end of your estimated value and probably would not be enough to cover the closing costs. In addition to that, you won't find a lender that will allow 100% financing. There is also the matter of whether or not the 2nd mortgage was a purchase money loan. If you opened the HELOC after you purchased your home, the new loan will be considered a cash-out refinance which will limit what you can do.
FHA will be your best option based on the numbers you've provided.