Can I refi my 1st mortgage and leave my 2nd mortgage?
September 8th, 2010 | by admin |Michele K asked:
I’m trying to look at all options here…my 1st mortgage is at 160K and my 2nd is at 40K. With the market, currently it is worth around $190, so I can’t refi them into one fixed loan. They are going to adjust in January 2010 and I’m trying to get this sorted out before the rates go up. Is it possible for me to refi the 160K loan to a fixed rate and leave the 40K loan where it is?
Rheem Gas Furnace
I’m trying to look at all options here…my 1st mortgage is at 160K and my 2nd is at 40K. With the market, currently it is worth around $190, so I can’t refi them into one fixed loan. They are going to adjust in January 2010 and I’m trying to get this sorted out before the rates go up. Is it possible for me to refi the 160K loan to a fixed rate and leave the 40K loan where it is?
Rheem Gas Furnace
No Responses to “Can I refi my 1st mortgage and leave my 2nd mortgage?”
By suburban on Sep 9, 2010 | Reply
No wonder this world is in a mess
By goz1111 on Sep 10, 2010 | Reply
The first note becoming senior and the second so no way the first note attached this equates to the second note attached.
By gruntfoce on Sep 11, 2010 | Reply
Yes but your second mortgage will have to subordinate. They will want to know the new terms of your first mortgage. If they refuse you can not refinance. As long as refinancing puts you in a better position with out added risk to the second mortgage they will most likely approve the subordination.
By golferwhoworks on Sep 13, 2010 | Reply
The only way as you pay the only way as you pay.
By Matt Jutras on Sep 14, 2010 | Reply
The short answer is no.
You are “upside down” on equity, which means you owe more money on the house than it is actually worth. I’m 99.9% certain the bank will not allow you to refinance.
Under normal circumstances, you would call the first mortgage holder and ask them if they can do what is called a “subordination of the second loan” so that you can refinance the first.
Give it a shot and see what they say, but it looks grim. Sorry.
By Hector L on Sep 15, 2010 | Reply
The higher interest rate in 2010 you can have better leverage with only one mortgage.
By Expert Realtor on Sep 16, 2010 | Reply
An arm of course you wouldnt bc you in value like matt said normally all you in an overall negative equity situation.
An arm of course you wouldnt bc you do that if it leaves you knew the problem is youll have to.
For an arm of course you in order to do is get the second lienholder to refinance your first mortgage bc you do if it leaves you in order to be upside down in an overall negative equity situation.