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To refinance or not to refinance, please help!
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BlueEyes
LIF Zygote
Member since 1/07 17 total posts
Name:
Rachel
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To refinance or not to refinance, please help!
Hi everyonem I have a question about refinancing. We did a piggyback mortgage when we close a year and a half ago to beat PMI. One mortgage is at 6 % and the other is at 8%. We want to combine both mortgages because the 8% is fixed for 15 years and then balloons. Chase told us that it doesnt pay to refinance because the market hasnt hit rockbottom yet but we want to put our minds at ease with just one mortgage. Can anyone give me advice, I would really appreciate it!!
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Posted 9/14/08 9:22 AM  |
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csorisi
My 2 LOVES
Member since 11/05 1984 total posts
Name:
Corinne
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Re: To refinance or not to refinance, please help!
I would not refinance because you may not have enough equity in your house to do combine them. That being said we were in the same situation as you but we had a variable rate second that shot from 5% at our first payment to over 9% at our second. What we did was we refinanced our second a year after we bought our house and took a 20 year fixed mortgage at 6.75 percent with Commerce. We did this before the mortgage crisis came about so we were able to take some our downpayment out of the house. it ended up only costing us $90 to do this. We hope to pay off the second within the next 5 years and just have the first. Let me know if you have any questions.
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| Posted 9/14/08 9:34 AM |
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BlueEyes
LIF Zygote
Member since 1/07 17 total posts
Name:
Rachel
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Re: To refinance or not to refinance, please help!
So, you are saying that I have to have a certain amount of equity in the house before I can combine the two mortgages, even if they are within the same bank? We started with some equity in the house but it hasnt gone up much because we bought at the wrong time! Now, we want to do some rennovations and its hard because we cant get a home equity loan!
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| Posted 9/14/08 9:37 AM |
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Erica
LIF Adult
Member since 5/05 11767 total posts
Name:
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Re: To refinance or not to refinance, please help!
maybe focus all extra money to that second mortgage and pay it off as fast as you can.
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| Posted 9/14/08 9:53 AM |
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VickiC
Rocking the party
Member since 5/05 4937 total posts
Name:
Vicki
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Re: To refinance or not to refinance, please help!
Your house would have to be worth more than both your mortgages combined in order for them to refinance and have one mortgage I believe. I know that we wanted to add to our HELOC maybe 6 months ago and they wouldn't let us because out Loan to Value was not high enough yet.
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| Posted 9/14/08 11:25 AM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: To refinance or not to refinance, please help!
8% is a lot for a second HELOC loan.
I would look into just refinancing that. You can get HELOCs from banks that cost nothing. No closing costs. Will probably get a better rate.
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| Posted 9/14/08 1:48 PM |
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