Posted on: 19th Dec, 2008 10:18 am
hi!
we live in texas and have a 1st position home equity loan with a fixed rate of 6.9 with 80% ltv.
we also have a 2nd position home improvement loan that takes our home up to 90%ltv with the appraisal that was done before improvements, which should hold in todays market. our loan is now classified as a jumbo loan, but we have excellent credit.
i was told when we did the 1st that we would be eligible for a rate reduction after 6 mos, which the company is not willing to live up to and rates for home equitys have gone up.
my question: is it possible to refi my 1st position home equity as a 1st position mortgage because it is in the 1st position so i can lower my interest rate. what is it that makes my loan a home equity instead of a mortgage because it holds the 1st position.
i have read info about texas a6 from another post, it stated that i could not have two of them on one residence. how do i find out if both loans are a6? if they are can i get the 1st position lender to refi me with a better interest rate as a primary mortgage?
thank you
we live in texas and have a 1st position home equity loan with a fixed rate of 6.9 with 80% ltv.
we also have a 2nd position home improvement loan that takes our home up to 90%ltv with the appraisal that was done before improvements, which should hold in todays market. our loan is now classified as a jumbo loan, but we have excellent credit.
i was told when we did the 1st that we would be eligible for a rate reduction after 6 mos, which the company is not willing to live up to and rates for home equitys have gone up.
my question: is it possible to refi my 1st position home equity as a 1st position mortgage because it is in the 1st position so i can lower my interest rate. what is it that makes my loan a home equity instead of a mortgage because it holds the 1st position.
i have read info about texas a6 from another post, it stated that i could not have two of them on one residence. how do i find out if both loans are a6? if they are can i get the 1st position lender to refi me with a better interest rate as a primary mortgage?
thank you
hi mpfurm
you have mentioned that 1st position home equity loan has a fixed rate of 6.9 with 80% ltv whereas the 2nd position home improvement loan has 90% ltv. keeping in mind this fact, i don't think the second loan is a texas a6 because a lender or a mortgage company can offer texas a6 for a maximum of 80% of the property-value.
so, i think you will be able to refinance the home equity loan. but you should remember that though you refinance the loan, it will still remain a home equity loan.
check out the following link to know more about texas a6 laws:
http://www.mortgagefit.com/texas/a6loan-law.html#23849
sussane
you have mentioned that 1st position home equity loan has a fixed rate of 6.9 with 80% ltv whereas the 2nd position home improvement loan has 90% ltv. keeping in mind this fact, i don't think the second loan is a texas a6 because a lender or a mortgage company can offer texas a6 for a maximum of 80% of the property-value.
so, i think you will be able to refinance the home equity loan. but you should remember that though you refinance the loan, it will still remain a home equity loan.
check out the following link to know more about texas a6 laws:
http://www.mortgagefit.com/texas/a6loan-law.html#23849
sussane