How to refinance a new Fannie Mae - Freddy Mac backed loan?
We have a first and second mortgage with one loan at 6.25% and one at 8%. Great credit scores and no late payments. We've been in the house for 5 years and it's basically worth the money we paid for it at the time. Dreams of consolidating the two loans or refinancing the first at the very least. Our first loan lender told us to forget about it. We feel trapped. by kelly_328_152 from Concord, Massachusetts. Aug 31st 2011
Richard Shapiro (RShapiro)
#0 ranked lender in Massachusetts - 71 contributions
A few questions:-Was the second mortgage used to purchase the home?-What are the balances of both mortgages-What indication did the lender use to lead them to the conclusion of your homes value?I would suggest contacting privately with the answers. We could run an AVM on your home to determine if you could refinance.Rich ShapiroAsset Mortgage GroupNatick
Jeff Cost (midwestlender)
#0 ranked lender in Ohio - 164 contributions
Although you are in a tough position it is not an impossible one. You may be able to do a Du refi plus loan (Home Affordable Refinance or a Freddie Mac open access refi. These programs let you refinance up to 105% Loan to Value. Another option you have is to pay down or pay off the second mortgage so you are at 96.75% Loan to Value. I can assist you further if you would like.ENG Lending, A Division of Bank of England, always puts your best interest first. We would appreciate the opportunity to serve you. Please visit us at www.cincinnatimortgagerate.net. You will soon find that we are so much more than a Mortgage Banker; we are a company that is dedicated to empowering our clients and referral partners. Don't forget to visit our Facebook Fanpage at http://www.facebook.com/pages/ENG-Lending-Cincinnati/171183536269710#!/pages/ENG-Lending-Cincinnati/171183536269710?sk=wallOr Call Anytime 513-403-6260
George DeVIne (gdevine)
#0 ranked lender in Rhode Island - 46 contributions
If your loan is in fact held with fnma or fhlmc, then there is a special mortgage program that will allow you to refinance the first provided the second lien holder will agree to subordinate. You're welcome to reach out to me at gdevine@atlantichomeloans.com or 401 301 0130 for more details.
Todd Tholl (toddtholl@leader1.com)
#0 ranked lender in Iowa - 239 contributions
There are definately programs out there for you to refi. They are tough to get done, but they're out there. Find a local lender you can trust.
Chasity Graff (Chasity)
#0 ranked lender in Louisiana - 29 contributions
The HARP loans that the other originators mentioned are a great resource to refinance a mortgage with little to no equity in the home (as long as your not currently paying mortgage insurance which I assume you are not since you have a 1st and 2nd mortgage). You will need to get with a HARP approved lender and Fannie Mae or Freddie Mac will need to approve you in their automated system for the transaction. But if thats not an option you can always try FHA. FHA does allow for you to do a rate/term refinance up to 97.5% of the appraised value on your owner occupied residence - regardless of when your 2nd mortgage was taken out. The only stipulation is if the 2nd mortgage is a line of credit you can't have drawn on the line in the last 12 months. A mortgage broker in your area can discuss all of your options with you. Good Luck!
Craig S. Spaulding (togabroker2@yahoo.com)
#0 ranked lender in New York - 18 contributions
I would suggest calling the company that holds the 2nd mortgage and see if they would allow a subordination. This would allow you to get into a lower interest rate on your 1st mortgage and create some monthly savings as well as some payment relief. It would depend on your current equity situation- Just another option for you to consider.If you should need any further assistance please contact me.Stay positive.Craig S. Spauldingtogabroker2@yahoo.com
To clarify, there was typo in my subject line (which I tried to correct with a subsequent post as there was no way to edit the subject), but neither one of our loans are backed by Fannie Mae or Freddie Mac.Our second loan was used to buy the house. It was 80/20 split. The second loan was for $80K and $76.2 are left. The first was for $320K and there is $300K left on it. Current town assessment is $410K. We bought for $400K.
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