HELOC and Refinancing possible?
I'm looking to refinance my home, however I have an existing home equity line of credit with a different bank. How does my HELOC affect my refinancing options? I've been current on all payments for the mortgage for 5 years and have had great credit for a little bit longer than that. Steadily employed as well. Am I okay to refinance? by charli_537_839 from Santa Fe, New Mexico. Oct 18th 2011
Dustin McAlister (dmcali_109_270)
#33 ranked lender in Kansas - 40 contributions
It all depends on how much you owe on each loan and what the total value of the home is. What are your balances on each loan and how much would you say your house would appraise for today?
Kelly Krauth (KKrauth)
#1 ranked lender in New Mexico - 28 contributions
You can choose to pay off both mortgages (HELOC) or subordinate the HELOC, which means you can keep that open as long as that lender allows it to be re-subordinated. The appraised Value will let you know how much you can appraise for either way. This is very easy and painless with the right lender who knows how to do these. Please call me if you would like me to answer anymore questions. 505-286-3071- New Mexico's Favorite Lender
Gene Neal (eneal@athccorp.com)
#31 ranked lender in New York - 281 contributions
The main thing would be if the other bank accepts a subordination agreement. It may cost between $50 to $100 depending on your current bank.
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
The HELOC will have to subordinate, and depending on your equity position, you might have a problem. If you have at least 30% equity, you might want to try the HomeOwnership Accelerator program. It's a first lien HELOC that is tied to your checking account and enables you to pay off your mortgage years less without any changes to your spending habits.. WilliamAcres.com
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