Posted on: 05th Jan, 2010 05:49 pm
we have a combination of three loans, a primary mortgage (397,000), which is an interest only (5.75%) for the first ten years and we are in year five, a home equity loan of 96,000 (6.99%) and a line of credit for about $33,000. we want to consolidate but just got the house appraisal and it was only $565,000, which we think was low. we thought our original lender would refinance the first mortgage but now they are saying we need to pay off $10,000 off one of the second loans before we close. should we just wait and hope the property values increase before the interest rates? we have excellent credit, good salaries but live in a very expensive part of ny. we are feeling very frustrated with this process!
Hi Guest!
Welcome to forums!
As there is no equity in the property, the lender will not be ready to refinance the loans into one. Keeping in mind the present market situation, it's difficult to say when your property value will get increased. In my opinion, if it's affordable for you, then pay off $10,000 on one of the second loans and get a refinance.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As there is no equity in the property, the lender will not be ready to refinance the loans into one. Keeping in mind the present market situation, it's difficult to say when your property value will get increased. In my opinion, if it's affordable for you, then pay off $10,000 on one of the second loans and get a refinance.
Feel free to ask if you've further queries.
Sussane