Posted on: 31st May, 2011 03:13 am
hi forum, i need advice. i have two loans – first and second – i want to know if i can refinance the first mortgage independent of the second mortgage?
Hi Scarlett,
If you have equity in your property and have the required credit scores and income, then you will be able to qualify for a refinance. But in my opinion, it will be better if you could refinance both the loans into one. If you do so, you'll be liable for paying only single monthly payment toward your mortgage.
Thanks,
Jerry
If you have equity in your property and have the required credit scores and income, then you will be able to qualify for a refinance. But in my opinion, it will be better if you could refinance both the loans into one. If you do so, you'll be liable for paying only single monthly payment toward your mortgage.
Thanks,
Jerry
Scarlett, most lending institutions will allow a refinance, based on equity as Jerry noted, as long as the existing second mortgage lender will "resubordinate" its interest in the property. This is something that you'd have to work out with that lender, and they'll wish to know the current appraised value of the home in order to provide you with a favorable answer to your request.
What you may wish to do beforehand is to attempt to discern the true value of your home now, before going to the lender's door. Check with a local realtor to see if you can get an idea of current value.
What you may wish to do beforehand is to attempt to discern the true value of your home now, before going to the lender's door. Check with a local realtor to see if you can get an idea of current value.
