Posted on: 09th Nov, 2010 06:54 pm
house value: roughly $600,000 in los angeles county
1st mortgage: $401,000 remaining on a 30yr fixed with a 5.37% interest rate
2nd mortgage: $31,000 remaining a 30 yr fixed with a 6.875% interest rate
i am thinking my two options are to either:
1) refinance the 1st and do my best to pay off the 2nd within five years.
or
2) refinance and combine both loans ($436,000) to a super conforming loan.
my question is, should i expect a higher rate for a super conforming loan than a conforming loan?
which option do you think is the best, or is there a better option that i am missing?
thank you in advanced for the advice.
1st mortgage: $401,000 remaining on a 30yr fixed with a 5.37% interest rate
2nd mortgage: $31,000 remaining a 30 yr fixed with a 6.875% interest rate
i am thinking my two options are to either:
1) refinance the 1st and do my best to pay off the 2nd within five years.
or
2) refinance and combine both loans ($436,000) to a super conforming loan.
my question is, should i expect a higher rate for a super conforming loan than a conforming loan?
which option do you think is the best, or is there a better option that i am missing?
thank you in advanced for the advice.
Hi SP,
In my opinion, it will be better to refinance both the mortgages into one. Thus, you'll have to pay one monthly mortgage payment every month. It will depend upon the market as to what type of rates you'll get once you apply for refinance.
Thanks
In my opinion, it will be better to refinance both the mortgages into one. Thus, you'll have to pay one monthly mortgage payment every month. It will depend upon the market as to what type of rates you'll get once you apply for refinance.
Thanks
You will run into some LTV issues with combining the first and second togehter. This will be considered as a cash out refinance and LTV is capped at 60%.
Agency jumbo is running at .125% higher than conforming loans on any given day, also, if you wish to combine the first and second, you will receive a price up hit for cash out refinace, another .25% to .375 depends on the rebate on the day.
I believe it is better to keep the two separate, this will be a long transaction since there will be subordination for the equity loan involved and the banks are quite slow at it.
Agency jumbo is running at .125% higher than conforming loans on any given day, also, if you wish to combine the first and second, you will receive a price up hit for cash out refinace, another .25% to .375 depends on the rebate on the day.
I believe it is better to keep the two separate, this will be a long transaction since there will be subordination for the equity loan involved and the banks are quite slow at it.