I have an 80/20 loan on my house. The 20 is a fixed rate and the 80% loan is and ARM set to re adjust in 2 yr?
sjr07 asked:
Can i refinance my 80% loan without touching my 20%? Of course I owe more on the house than it is worth.
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Can i refinance my 80% loan without touching my 20%? Of course I owe more on the house than it is worth.
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Tags: Fixed Rate, House Worth, Refinance Loan
February 9th, 2009 at 5:16 am
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Sure you can. Just don’t hide the second from the refinancing co.
Will you be able to do so? Given this economy, it is not a given.
February 12th, 2009 at 3:45 am
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You probably can. But the 2nd lien will be taken into account and there is no guarantee your house will appraise to cover the full 80%.
How is your ARM now? Is the payment working out for you? There has been some discussion of helping homeowners who are in trouble with sub-prime loans to modify so that new loan will be no more than 31% of home owner’s income. (I think. Actual details may be different ratio. Or they may not have worked out the details on this yet.) This may give you a way to re-fi both into one fixed rate loan.
Check w/your lender.
Good luck.
February 14th, 2009 at 4:43 pm
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No one is going to lend you enough on that house to pay off the existing first mortgage, because there is not enough value in the house.
You are in the same situation as the people who maxed out their mortgages and now can’t pay them, resulting in foreclosure: you took out an ARM that will adjust soon and you can’t refinance it because property values went down instead of continuing upward. If you can handle the increase in the payments for the ARM when it adjusts, consider yourself fortunate that you don’t lose the house to foreclosure.
February 16th, 2009 at 3:06 am
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it’s possible to refinance just the first mortgage and subordinate the second IF the second mortgage agrees. There is only 1 loan program that I can think of that doesn’t have a combined loan to value restriction in its guide lines meaning it doesn’t really matter how much owe combined.
email me if you need more info or help
February 17th, 2009 at 7:59 am
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Face the facts you financed for 100% of the value of the home, it is no longer worth that amount. No you will not be able to refinance and still keep that amount as you are out of equity. They will see the 20% additional mortgage.