Posted on: 07th Nov, 2007 11:01 am
i am loking at consolidiating a LOC, car loan, 401k loan into a 2nd mortgage. home value 165k, bal 88k, i want to consolidate 32k into a 15yr loan with no prepay pen is this possible?
Hello Jmmathis,
Do you have a first mortgage on your property?
If the LOC, car loan and 401k loan is 32k and you have 88k balance in mortgage, then you will have to get a new loan of about 120k. If the equity in your home is 165k, then you may get that.
But you have to shop for lenders to get a reasonable rate depending on your credit score.
Do you have a first mortgage on your property?
If the LOC, car loan and 401k loan is 32k and you have 88k balance in mortgage, then you will have to get a new loan of about 120k. If the equity in your home is 165k, then you may get that.
But you have to shop for lenders to get a reasonable rate depending on your credit score.
i do have a 1st mortgage
you shouldn't have to put it into one note (or refinance your first mortgage) unless you have rough credit.
they key term for you to understand here is: ltv or loan to value
most lenders want to stay under the "magic" number of 80%ltv. so, if your home is valued by the lender at 165k...80% is 132k. you state you owe 88k on the first, which leaves a difference of 44k you should easily be able to borrow against (provided your debt to income ratio and credit are also good). you will get a higher interested rate on a 2nd mortgage or heloc than in you refinance your 1st mortgage with the new amount.
my advice: shop around. check with 2 or 3 lenders (not brokers) and put in an application. with basic information and pulling your credit, they should be able to tell you what they can/can't do for you.
they key term for you to understand here is: ltv or loan to value
most lenders want to stay under the "magic" number of 80%ltv. so, if your home is valued by the lender at 165k...80% is 132k. you state you owe 88k on the first, which leaves a difference of 44k you should easily be able to borrow against (provided your debt to income ratio and credit are also good). you will get a higher interested rate on a 2nd mortgage or heloc than in you refinance your 1st mortgage with the new amount.
my advice: shop around. check with 2 or 3 lenders (not brokers) and put in an application. with basic information and pulling your credit, they should be able to tell you what they can/can't do for you.
hello jmmathis,
even i agree with james. refinancing your first mortgage is a better option because your rate of interest will be lower in this case than a second mortgage.
even i agree with james. refinancing your first mortgage is a better option because your rate of interest will be lower in this case than a second mortgage.
james, why do you say not to shop with brokers, after all brokers have contacts with nationalised lenders, so there' ll be a variety of loan programs from which a person can choose the one he prefers.