Posted on: 17th Feb, 2011 10:25 am
hello all,
i have a $91k mortgage @ 6% fixed fha and a $38k home equity loan @ 13.25%. my house is worth over 140k.
we have lived in the house for over 5 years now.
can i refinance those two loans together into a mortgage? should i do that?
thanks for any help!
i have a $91k mortgage @ 6% fixed fha and a $38k home equity loan @ 13.25%. my house is worth over 140k.
we have lived in the house for over 5 years now.
can i refinance those two loans together into a mortgage? should i do that?
thanks for any help!
You can IF the HELOC was a purchase loan and not a cash out loan taken after the purchase
If it was a cash out you would be capped at 85% loan to value by FHA and not have enough equity to qualify. If it was a purchase loan then you could go to 96.5% with FHA and could get a rate for all of the money at or below 5%
B
If it was a cash out you would be capped at 85% loan to value by FHA and not have enough equity to qualify. If it was a purchase loan then you could go to 96.5% with FHA and could get a rate for all of the money at or below 5%
B
It was taken out as a home equity loan, not a home equity line of credit.
hi Brian,
Just wondering how this works exactly, if the FHA will only refinanance upt0 85% of the home value, why does it make a difference if the equity loan is a HELOC? It's still 38K of debt that would need to be rolled into the new mortgage wouldn't it?
Just wondering how this works exactly, if the FHA will only refinanance upt0 85% of the home value, why does it make a difference if the equity loan is a HELOC? It's still 38K of debt that would need to be rolled into the new mortgage wouldn't it?
definitely refinance.
fha does not treat second mortgages as cash out if the second mortgage was not acquired at purchase. conventional loans do that.
so, you probably need to do another fha mortgage. it will be an fha rate and term refinance and that is ok up to 96.5% of the appraised value.
if you can do an fha 15 year fixed loan, do that.
if not, do fha 30 year fixed.
fha monthly insurance premium (mip) payments go up a little in april, 2011, so, best to apply soon.
i can not tell you how much lower monthly payment will be unless you tell me if the second mortgage was 5 or 10 or 15 or 20 or 25 or 30 year fixed
fha does not treat second mortgages as cash out if the second mortgage was not acquired at purchase. conventional loans do that.
so, you probably need to do another fha mortgage. it will be an fha rate and term refinance and that is ok up to 96.5% of the appraised value.
if you can do an fha 15 year fixed loan, do that.
if not, do fha 30 year fixed.
fha monthly insurance premium (mip) payments go up a little in april, 2011, so, best to apply soon.
i can not tell you how much lower monthly payment will be unless you tell me if the second mortgage was 5 or 10 or 15 or 20 or 25 or 30 year fixed
John,
Thanks for the information!
The HEL is 30 year fixed.
Thanks for the information!
The HEL is 30 year fixed.
You are welcome.
Do the refinance right away
Do the refinance right away