Posted on: 03rd Dec, 2009 12:45 pm
what are the rules to refinance and pay off home equity loan? i was told i could not renance at the first mortgage rate but would have to refinace at the higher home equity rate. this make no sense to me and does not seem fair.
When you refinance and combine both loans into one, your rate will depend solely upon that new scenario. So, yes it does not make sense and you should speak with someone else.
Depending on what state you live in determines the ltv amount you can borrow. You can refi a home equity loan in most cases. I would get a 2nd opinion. Your credit scores are a big factor with traditional loans.
However, if you were 62 yrs or older a reverse mortgage has no credit qualifications.
However, if you were 62 yrs or older a reverse mortgage has no credit qualifications.
If you have drawn on the HELOC in the last twelve months then it is going to be considered a cash-out refinance and your LTV will be limited on the refi...i know that is the case with FHA, conventional it may be cashout regardless unless it was purchase money and you haven't drawn on it since...not sure though
as eric noted, you've been given bogus information, and you need to shop around a little bit more...perhaps a lot more. refinancing in a traditional sense is the norm, and being told that you're stuck with a higher rate for a home equity loan is bizarre to say the least.
