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Answers (3)
- Nathan Wolf, "natewolf"
- Contributions:1825
You may consider refinancing the second mortgage only. Call the bank and see if they will adjust you to a lower rate. Let them know you are shopping it around -- with your credit score they will know you are a serious person, and will likely be willing to consider lowering your rate, rather than losing you as a customer.
- Nathan Wolf, "natewolf"
- Contributions:1825
No you don't have to pay off. At that price you probably qualify for an FHA mortgage. But you were in a 80/20 to avoid PMI (private mortgage insurance). The reason most people choose to do this is that the interest on your second mortgage is tax deductible. While PMI is NOT tax deductible. With your scores, coupled with your income (debt-to-income ratio), a lender will determine whether a new loan would make it worth the PMI compared to paying the higher rate on the 20% second you currently have.
I would venture to say that you can get a lower rate, but the actual monthly and tax savings may not make it worth switching your loan program.
I would venture to say that you can get a lower rate, but the actual monthly and tax savings may not make it worth switching your loan program.
- ducksoftcom
- Contributions:2
additional information: primary/coborrower fico scores around 700-800, outstanding balance ~96k. purchase price around 99k.
Don't know what helps answer this question but would love to get some heading in a direction. Spent a few hours on hold today trying to speak with a human before giving up on the phone-route for the day.
Don't know what helps answer this question but would love to get some heading in a direction. Spent a few hours on hold today trying to speak with a human before giving up on the phone-route for the day.
80/20 Refinancing Question - Is it possible? Is it worthwhile?
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