Combining a first mortgage and a HELOC at 100% ltv
We would like to combine our 1st mortgage with our HELOC to lower the interest rate. Together they equal approx. 100% ltv. We have a good credit score and have never made late payments or missed payments. We have a great rate for the 1st mortgage at 3.75%, but our HELOC is at 9.0% and we cannot refinance it . . . our HELOC was owned by Countrywide, then sold to Bank of America and now sold to a company called CCO. CCO says they do not do business in our State and cannot do anything for us. :( It seems like there are so many programs coming out for people who cannot pay their mortgages, I am wondering if there are any lenders who will take a chance on those who do pay but we just lack equity now since the market has dropped so much. Our overall goal is to be debt free. Thank you for any advice. by kander_593_237 from Kenosha, Wisconsin. Aug 18th 2012
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,848 contributions
Unfortunately, it is not likely you'll be able to do what you'd like. Most programs will limit combining the two loans into one to 85% of the value of the home. Anytime you go over 80%, you'll have to deal with PMI too. If you have a FHA loan, under some circumstances, you could go to 97% (but again, with PMI). There are some limited banks that may go to 90% without PMI, but the rate will be a bit higher. Consult with a non-bank lender, give them a full application, and let then see if there are any options for you. We lend in WI, and you can visit our web site at www.MortgagesUnlimited.biz
Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 2,431 contributions
One of the things you may want to try is to contact a local Community bank or a credit union. Find out what they can do. More than likely, you will need to pay down the principal a little, but I have seen credit unions, recently, advance up to 95% of the appraised value to extremely well qualified borrowers. Good luck. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com 888-889-9950
Michelle Curtis Loan Originator NMLS 401173 (MichelleCurtisLO)
#77 ranked lender in Florida - 2,245 contributions
I don't believe there is any program out there to help you at the moment.
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