Posted on: 19th Nov, 2008 08:18 am
My house is currently valued at 199,000. I owes 147,700 on my existing 30yr fixed rate mortgage.
I want to refinance 109,000 for 15yrs fixed rate and also take out a 2nd mortgage as a HELOC of 50k for the remainder of 38,700.
The total value of the two mortgages is 147,700 and my 80% ltv of 199,000 is 159,200. I don't understand why they can't do this can some one please explain to me. The mortgage company could not. All they told me is that it was considered a cash out and you can't do that in Texas.
I want to refinance 109,000 for 15yrs fixed rate and also take out a 2nd mortgage as a HELOC of 50k for the remainder of 38,700.
The total value of the two mortgages is 147,700 and my 80% ltv of 199,000 is 159,200. I don't understand why they can't do this can some one please explain to me. The mortgage company could not. All they told me is that it was considered a cash out and you can't do that in Texas.
Hi Cash,
Per Texas A6 law, you can't exceed 80% LTV on a Refinance Cashout transaction. Now, what you are trying to do is Refinance your first -$109,000 and take a HELOC for 50,000 that will consolidate the second of $38,700 and leave you with $11,300 cash in hand. That implies, the total of $159,000 i.e. 80% CLTV.
Looks like your mortgage company was not able to understand or if you have already done the appraisal with them, the appraisal didn't turn out to be $199,000 because I don't see a problem why you can't go ahead with your plan. It doesn't seem to be a problem to me, try explaining them again about it. Also, find out what your appraisal came back for (If you did an appraisal with them)
Good Luck!
Per Texas A6 law, you can't exceed 80% LTV on a Refinance Cashout transaction. Now, what you are trying to do is Refinance your first -$109,000 and take a HELOC for 50,000 that will consolidate the second of $38,700 and leave you with $11,300 cash in hand. That implies, the total of $159,000 i.e. 80% CLTV.
Looks like your mortgage company was not able to understand or if you have already done the appraisal with them, the appraisal didn't turn out to be $199,000 because I don't see a problem why you can't go ahead with your plan. It doesn't seem to be a problem to me, try explaining them again about it. Also, find out what your appraisal came back for (If you did an appraisal with them)
Good Luck!
Hi cash,
It's true that in Texas, you can't go for a cash out refinance for more than 80% Loan to value ratio. I'd agree with Shane here. Perhaps the appraised value didn't come out to be 199,000.
Now let me know whether you intend to take $109,000 as cash-out for the first mortgage? If that is so, then your total mortgage amount would come out to be = $109000 + 147,700 + $50,000 = $ 306700 which is much higher than 80% LTV. So, probably that's why the lender has denied the offer.
Regards,
Jessica.
It's true that in Texas, you can't go for a cash out refinance for more than 80% Loan to value ratio. I'd agree with Shane here. Perhaps the appraised value didn't come out to be 199,000.
Now let me know whether you intend to take $109,000 as cash-out for the first mortgage? If that is so, then your total mortgage amount would come out to be = $109000 + 147,700 + $50,000 = $ 306700 which is much higher than 80% LTV. So, probably that's why the lender has denied the offer.
Regards,
Jessica.
I owe 147700 on my current mortgage house is valued at 199,000.
I want to refinance the 147,700 and have it payed off. Then I have one loan I will call them the 1st mortgage and 2nd mortgage (HELOC).
1st 15 year @ 6% fixed rate - $109,000
2nd(50K HELOC)- $38,700
Which leave me $11,300 avaliable on my HELOC
109,000+38,700=147,700
80% of 199,000=159,200
I actually come in under the 80 by (159,200-147,700=11500)
I am not taking any money out as cash I just want to open a HELOC so I would have easier access to my equity.
The only thing I can think of is that they are both falling under the A6 law about not have to cash out loans at the same time.
I want to refinance the 147,700 and have it payed off. Then I have one loan I will call them the 1st mortgage and 2nd mortgage (HELOC).
1st 15 year @ 6% fixed rate - $109,000
2nd(50K HELOC)- $38,700
Which leave me $11,300 avaliable on my HELOC
109,000+38,700=147,700
80% of 199,000=159,200
I actually come in under the 80 by (159,200-147,700=11500)
I am not taking any money out as cash I just want to open a HELOC so I would have easier access to my equity.
The only thing I can think of is that they are both falling under the A6 law about not have to cash out loans at the same time.
hi cash!
as far as i can understand, you are paying the $38,700 towards the second mortgage. in that case, you will be left over with $11,300 and $109,000 which comes up to $1,20,300. with this you cannot pay off the $1,47,700. you need to give some extra cash towards it. however, if you add $109,000 and 50k heloc, then its comes within 80% ltv. it is surprising why the lender is not offering it to you. i guess, you should talk to the lender once again.
thanks,
jerry
as far as i can understand, you are paying the $38,700 towards the second mortgage. in that case, you will be left over with $11,300 and $109,000 which comes up to $1,20,300. with this you cannot pay off the $1,47,700. you need to give some extra cash towards it. however, if you add $109,000 and 50k heloc, then its comes within 80% ltv. it is surprising why the lender is not offering it to you. i guess, you should talk to the lender once again.
thanks,
jerry
i just learned from a website that in texas, the borrow is limited to 50% fmv for a heloc as opposed to 80% of fmv for a home equity loan. the rates are much lower for a heloc, but the amount one can borrow is also much less.