J B asked:
I took out an 80/20 about 3 years ago…6.375% fixed on first and 7.9% fixed on second. I want to refinance.
I took out an 80/20 about 3 years ago…6.375% fixed on first and 7.9% fixed on second. I want to refinance.
Current Appraised value: $220,000
Amount owed on first mortage: $174,000
Amount owed on second mortgage: $45,000
So I called bank, the suggested combining the loans at first, but realized my loan to value was at 100%, so told me to get lost, i need atleast an 80% value to refinance.
But my question, can I just refinance the first mortgage? This has a loan to value of 79%, so can i just refinance this loan only, and leave the second seperate. Or can i just refinance the second only and leave the first as is?
Any help would be much appreciated. And BTW neither loan is guarenteed by Freddie or Fannie, so i think Obama’s plans are not options.
Tracy
Robin
Yes, you can refi the first loan but you will need written permission from the second lien holder to do it. Start by contacting the second lien holder and asking them if they will agree to a “subordination agreement?”