Posted on: 10th Jan, 2011 07:21 pm
i have a 1st & 2nd loan. i'd like to lower my interest rate. currently it is 6.35% on a 116,500 1st and 7.875% on a 21,650 second. bought the house for 144,500 but it is probably only worth about $132,000 right now. i still owe $107,000 on the 1st and $14,000 on the 2nd. is there any way to be creative to refinance and get a lower interest rate? i've talked to a few mortgage brokers but they all say i don't have enough equity to roll my loans into one, and if i refinance on the 1st mortgage only i'll have to pay mortgage insurance (which is why i got the two loans in the first place). i'm very frustrated not being able to take advantage of the much lower interest rates offered now. as a wild idea i've thought about selling my house for what it is appraises at, having someone i know buy it, and take over the payments on that low interest loan. any suggestions?
Hi ruby,
As far as I can understand, you've some equity in your property. In such a situation, you should be able to refinance both the mortgages into one. The idea that you've mentioned is quite good in my opinion. However, you should have the required credit score and a stable income in order to take over the payments.
Thanks,
Jerry
As far as I can understand, you've some equity in your property. In such a situation, you should be able to refinance both the mortgages into one. The idea that you've mentioned is quite good in my opinion. However, you should have the required credit score and a stable income in order to take over the payments.
Thanks,
Jerry
You might be able to negotiate a short pay off on the second. Do you have any money to pay for closing costs?
