Can I get a home equity loan or do I have to re-do my mortgage?
mazey1967 asked:
I bought my home 4 years ago, and it appraised at $101,000. I bought it through a mortgage company, on a 30 year loan. Now that I can afford to pay a little more I’d like to redo my loan, and add my car payment on with it on a 15 year loan. The problem is that the mortgage company had a stipulation that they got to do my 2nd and 3rd mortgage, which they want to charge thousands of dollars in fees to do. Can I go through my local bank and do a home equity loan using my house as collaterol, and pay of the mortgage company?
I bought my home 4 years ago, and it appraised at $101,000. I bought it through a mortgage company, on a 30 year loan. Now that I can afford to pay a little more I’d like to redo my loan, and add my car payment on with it on a 15 year loan. The problem is that the mortgage company had a stipulation that they got to do my 2nd and 3rd mortgage, which they want to charge thousands of dollars in fees to do. Can I go through my local bank and do a home equity loan using my house as collaterol, and pay of the mortgage company?
December 13, 2008
• Tags: Bank Loan, Collaterol, Home Equity Loan, Mortgage Company, Stipulation • Posted in: Renting & Real Estate
7 Responses to “Can I get a home equity loan or do I have to re-do my mortgage?”
depends what the rate is on the first mortgage.
if it’s less than 6.25% than you might want to think twice about refinancing.
FHA allows you to go up to 95% ltv…and with good rates.
You can still refi to a 30yr fixed mortgage, and make payments as it was a 15yr mortgage. You dont want to strap yourself for money if you can afford ‘a little more’.
Sure why not. Are you sure about the other point? That your lender requires you to use only them to refinance? Are you absolutely certain? Sounds fishy to me.
I’ve never heard about a stipulation in final docs that gives a lender exclusive rights to your subsequent mortgages: did you use a broker? I hate to say it, but that sounds like something a less-than-honest broker would say to get you to come back to them. In any case, it would be spelled out very clearly in your final note that you signed.
As far as your other question about your car, you really should get advice from a mortgage professional. It MAY be a great idea to refi and include other debt (like your car) in your mortgage payment, but it might NOT if you have a rate that is unbeatable in today’s market. What about a HELOC or a personal line of credit? Or what about simply making accellerated payments on your car? You have quite a few options: sit down with someone who can help you make the best decision. I would strongly recommend you start with the wealth management advisor at your bank - almost all banks have someone in that position and they would not be as inclined to try to convince you to do a home refi simply because they want to get paid.
Be careful, make an educated decision, and good luck!
It depends on how much you still owe. If you have enough equity in your home then you should be able to get a home equity. There are no stipulations that tie you to a lender. There may be a pre pay penalty that does not allow you to refinance without a fee, but a home equity will be based on credit score, income debt ratio, and the amount of equity available in your home.
If you are a first time borrower of a home equity loan it is imperative that you have a checklist of essential questions that you need to ask each and every lender. The answers to these questions will provide a valuable reference to base your comparisons on. What’s the interest rate? Knowing this is crucial. The interest rate will determinepercentage by which the adjustable rate will change. What is the Annual Percentage Rate or APR? The APR on the home equity loan will determine the yearly payment you will need to make towards this.The higher the payment in terms of points, the lower is the interest rate.
The first lien lender cannot keep you from getting a second. You should ‘out them’ for the scammers that they are….
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