Posted on: 03rd Jun, 2011 02:21 am
i have 2 mortgages - my 1st loan is of $275,000 and 2nd loan is for $50,000. presently, my home value is $365,000. now i want to refinance my mortgage. what are my options? will i be able to get a refinance though i have a second mortgage?
Hi Jannet,
As far as I can understand, you've equity in your property. In such a situation, you will be able to get a refinance. However, in order to get a refinance, you should also have a good income and excellent credit scores. You can refinance both the mortgages into one. This will make you liable for only one single monthly payment every month.
Take care.
As far as I can understand, you've equity in your property. In such a situation, you will be able to get a refinance. However, in order to get a refinance, you should also have a good income and excellent credit scores. You can refinance both the mortgages into one. This will make you liable for only one single monthly payment every month.
Take care.
Jannet, I have to concur with Sara here, that you'll be able to refinance, assuming that your credit and income are in line with what's required by your lender of choice.
I need to point out, however, that in all likelihood, you'll be asked to consolidate the two loans into one new one when you approach a lender. Your overall loan-to-value ratio is almost 90% based on the value you stated, and that's bumping up against the maximum available.
There's a possibility that you could also refinance only the first mortgage and request that the second mortgage lender resubordinate its lien to the new loan.
By all means, you ought to discuss this with a lender to see what options you'll have; and if you wish to shop around, of course, you can certainly check with a few lenders.
But all things being equal, it would seem you're in reasonable shape to allow for a refinance.
I need to point out, however, that in all likelihood, you'll be asked to consolidate the two loans into one new one when you approach a lender. Your overall loan-to-value ratio is almost 90% based on the value you stated, and that's bumping up against the maximum available.
There's a possibility that you could also refinance only the first mortgage and request that the second mortgage lender resubordinate its lien to the new loan.
By all means, you ought to discuss this with a lender to see what options you'll have; and if you wish to shop around, of course, you can certainly check with a few lenders.
But all things being equal, it would seem you're in reasonable shape to allow for a refinance.
On what basis does the lender accept to refinance ? Is the income plays a major role ?
Hi unab!
Welcome to forums!
Income is not only the sole basis in order to qualify for refinance. There should be equity in the property. Unless there is equity in the property the lenders won't be ready to refinance the home loan.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Income is not only the sole basis in order to qualify for refinance. There should be equity in the property. Unless there is equity in the property the lenders won't be ready to refinance the home loan.
Feel free to ask if you've further queries.
Sussane