0
Can you refinance home equity loan without touching the first loan?
Wiki User
∙ 13y ago
That's what a refinance is changing the terms. However, if you have equity, can get a 2d as alternative.
Wiki User
∙ 13y ago
Add your answer:
Earn +20 pts
Can you refinance your 1st mortgage if you have a home equity loan?
Yes. You must either pay off the home equity loan separately or with the refinance, or you must request that your home equity lender "subordinate" your loan. This means they sign a written and recorded agreement that allows your new first mortgage to be recorded on title in place of the old one and the home equity lender agrees to state "subordinate" to the new first. Your refinance loan officer or title company can make this request for you.
Can you refinance first and second mortgage without any equity and a chapter 7 discharge?
If you have zero equity (both loans combined and individually are more than the home value) then the only option available is to seek refinance or modification options with your existing lender. Since they already own the risk, they don't assume further risk for working with the "underwater" property. No new lender will be able to finance a home without equity regardless of CH7 status. Equity aside, most lenders require 2 years to have passed from the CH7 discharge date.
How could one obtain a credit equity home loan refinance?
One can obtain a credit equity home loan refinance by going to their local bank and finding out more information first. If one is not happy with their own bank's interest rates, then checking around would be a good option.
Can you get a home equity loan if you have a 1st and 2nd on your property and your escrow states that you can not refinance for 3 years?
A Home Equity loan is an additional loan from your first and second mortgage. It does not require a refinance process. However, consider if you want to saddle your home with any more debt, given that you may not have much equity. If you are paying PMI, it may also change that position.
Can you refinance a first mortgage without paying off an existing home equity line of credit?
Typically you can refinance the a Primary Mortgage without refinancing the second line of credit or equity loan. It will require a subordinaion agreement by the lien holder of the line of credit. They will require several documents from new Primary Mortgage Holder to be. They will need things like a copy of the appraisal, application for the loan etc... They will most likely require a payment to process the agreement usually around 100-200 dollars. The subordination agreement usually takes about 2 weeks to complete with most lenders. Loan to Value will be a concern for this.
If I choose to refinance my first mortgage, will it have an effect on my second mortgage for the same property?
Yes it usually does. Most often you can not refinance unless you pull both mortgages into one and you can't do that without equity. My parents have this problem now.
Can you refinance your 1st mortgage if you have a home equity loan?
Yes. You must either pay off the home equity loan separately or with the refinance, or you must request that your home equity lender "subordinate" your loan. This means they sign a written and recorded agreement that allows your new first mortgage to be recorded on title in place of the old one and the home equity lender agrees to state "subordinate" to the new first. Your refinance loan officer or title company can make this request for you.
Can you refinance first and second mortgage without any equity and a chapter 7 discharge?
If you have zero equity (both loans combined and individually are more than the home value) then the only option available is to seek refinance or modification options with your existing lender. Since they already own the risk, they don't assume further risk for working with the "underwater" property. No new lender will be able to finance a home without equity regardless of CH7 status. Equity aside, most lenders require 2 years to have passed from the CH7 discharge date.
How could one obtain a credit equity home loan refinance?
One can obtain a credit equity home loan refinance by going to their local bank and finding out more information first. If one is not happy with their own bank's interest rates, then checking around would be a good option.
Can you get a home equity loan if you have a 1st and 2nd on your property and your escrow states that you can not refinance for 3 years?
A Home Equity loan is an additional loan from your first and second mortgage. It does not require a refinance process. However, consider if you want to saddle your home with any more debt, given that you may not have much equity. If you are paying PMI, it may also change that position.
Can you have 2 first mortgages on 1 property?
No, the second mortgage would be called a home equity loan and usually interset rates are higher. If a second loan (mortgage) is needed, it may be better to add it to the first and refinance, assuming you have equity in the home to do so
How do you get to first base without touching ball?
By a walk.
Can you refinance a first mortgage without paying off an existing home equity line of credit?
Typically you can refinance the a Primary Mortgage without refinancing the second line of credit or equity loan. It will require a subordinaion agreement by the lien holder of the line of credit. They will require several documents from new Primary Mortgage Holder to be. They will need things like a copy of the appraisal, application for the loan etc... They will most likely require a payment to process the agreement usually around 100-200 dollars. The subordination agreement usually takes about 2 weeks to complete with most lenders. Loan to Value will be a concern for this.
If you bought a house last year and it has decreased 15k in value and you need to refinance next year because your interest rate will no longer be fixed how can you refinance with no equity?
It is possible to refinance "out of equity" and take a loan that is more than the home is worth in certain cases. I don't recommend this option. If you were forced to sell your home because your job is relocating you, or you can no longer afford the payments, you are then in a very bad position. In order to sell you will have to come to the closing table with money. The first thing I would do is contact your current company and see if they have a fixed rate conversion option without doing a full refinance. Some lenders will charge you a fee to convert an adjustable rate to a fixed rate. If they want you to refinance, you are better off shopping around. Your current mortgage company will not give you any breaks to refinance. The other option is to have an appraisal done closer to the time the adjustment will happen. You may be able to get a more favorable value. ---------------------------------------------------------------------------------------------- If you are in a situation where you have no equity there are still a select lenders that are financing 100% of the appraised value. I personally have two lenders that will lend 115% to an "A" paper borrower. Having negative equity is never a great thing to have, but if your back is against the wall and you plan on staying in the property for the long term, this may be the only feasable option. Having negative equity negates the detrement of missing a mortgage payment and having a poor credit history. If you credit is healthy now, and you plan on staying in the property for the long term, refinance as soon as possible. If you need to relocate due to job displacement, maybe consider using the property as a rental rather than selling. Use the money you would have brought to the settlement table to knock off your principal and get a good tenant in the building. Selling without equity should not be an option unless your in dire straits. Also, Finding an FHA approved lender will greaten your chances of being able to refinance. The new FHA "secure" that was implemented by George W Bush was implemented(pending Jan 2008) for home owners with little equity and adjustable rate mortgages that will expire. In this current mortgage market FHA is the only way to go to get a low equity or ARM fixed at a competive interest rate. Even if you miss a payment after the loan adjusts this will not be counted as long as the payment history prior to the rate adjustment is a 0x30 rating (No lates in 12-24 months) FHA would be you best option if you need to refinance.
Who does one talk to to refinance a loan?
If you want to refinance a loan, discuss it over with the company/people who you had a loan with in the beginning. Whoever you financed a loan with first, refinance with them again.
Can you get a home equity line of credit with instant equity as collateral?
No. Any home equity line uses the underlying property as collateral. A home equity line will only be extended if the following are all true: * The valuation of the home suggests that there is equity left over after meeting the obligations of the primary/first mortgage * There is not already a second mortgage outstanding * The credit worthiness of the borrower is good (score of 720+) Instant equity is usually only generated through the refinance of a house (revaluing the home upwards from where the valuation was when obtaining the first mortgage). At that time, one may cash out part of that equity increase and apply the amount cashed out to the new loan. The popping of the housing bubble has greatly reduced the number of refinances that provide for cash out.
How to Get the Lowest Refinance Rates?
Mortgage interest rates are near the lowest point they have ever been. Because of this, refinancing to take advantage of the low rates is a great idea. Unfortunately, banks have tightened their lending requirements and have made it more difficult for people to take advantage of the low rates. Luckily, there are several ways a person could increase their chances of getting the lowest refinance rates. The first way to get lower refinance rates on your mortgage refinance would be to consider a 15-year amortizing loan as opposed to a traditional 30-year loan. With rates as low as they are, many people could actually switch to a 15-year loan without seeing a drastic increase in their monthly payments. For example, if you had a 30-year, $200,000 loan with a 7% interest rate, you would have a monthly payment of $1,330 per month. If you look to refinance after 7 years, your mortgage balance would be reduced to $182,000. At a 3.75% rate, the 15-year mortgage payment would be only $1,325 per month. The second way to get lower refinance rates on your mortgage refinance would be to put forth sizable equity into your home. Due to declining home prices across the country, many people now have less equity than they did at closing. In some situations, they may even have an underwater mortgage with negative equity in their home. Unfortunately, to take advantage of the low rates, a person will need to have at least 10% equity in their home. To get the best rates, and to avoid paying private mortgage insurance, a borrower will need to have at least 20% equity in their home. For those with less, this could require a large equity pay down. The third way to get lower refinance rates on your mortgage refinance would be to shop around with numerous banks. While banks have tightened their lending practices, banks are still looking to lend to qualified customers. If you have a good credit history and sizable equity, then you will have plenty of negotiating power with lenders. To give yourself the most leverage, apply for a mortgage with several different banks. These banks should each provide you with a fee and rate quote, which could be used to negotiate down rates and fees with other banks.
