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Currently have 2 mortgages, can I refinance?

My wife and I bought a house in approx 2009 consisting of $417k in one loan, and the remainder of approx $80k, in a second mortgage. This was to avoid PMI. 5.35% and 8% rate respectively. The problem is that in about 7 years there is a balloon payment on the smaller mortgage for the remainder of the balance, and Id like to refi now, for a good rate, and not have to worry about the balloon payment in the future. 

   Currently owe around $470,000. We have excellent credit and high income. 

My question is it possible to wrap both together and refinance using a jumbo loan? What are the requirements?  Any other suggestions? 
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May 05 - Aldie
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Answers (8)

Well in your current situation it would make sense to refinance if you have high credit, good income, and stable values.  The key will be the value of the home.  Most Jumbo loans typically cap out around 80-90%

You could always just refinance the second, but the rate is a little high on it.

I have a few other suggestions as well.  Please email for more info.
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May 05
Your new loan will be what many lenders call "conforming Jumbo" or Agency Jumbo, not a true Jumbo, which in your county is, in fact, 625,501 or higher.The key to your refinance is the present value of the home, and proof the second was used to purchase and avoid the PMI (should be easy to prove). The rates should be lower than your first, and overall, your payment should be lower, but again, without a current appraisal value, giving you definitive figures vs what if figures is problematic.
Obviously, most of us that answered your question here would be happy to go over your options with hard numbers so you can make the best decision possible for you and your family.

Best wishes, Jim
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May 05
Based on your post it make good scene to refinance both loans and locked them into a fixed rate. Also based on the property location you could qualify for a conventional loan vs a Jumbo. I can be reach via my profile so we can discuss in details all your options. 
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May 05
Yes, if you have at least 10% equity you can do a single loan that will wrap in both the first and second, as long as we can document via hud-1 from purchase that you used the second mortgage to purchase.  The loan limit in Loudon County is $625,500, so you won't be in true jumbo, and would only need 10% equity.  Rates are definitely lower than 5.35%, and there are ways to limit your closing costs.  Refinancing sounds like it would very likely make sense, would be happy to go over more details with you.
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May 05

On the second loan, was this loan done at the time that you bought your home or was it done after you purchased your home?

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May 05
... one can always find someone to lend you money, it just depends how much you want to pay......

Ask friends for referrals for mortgage brokers or lenders, shop around locally or talk to your current lenders...
 
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May 05
If the home would currently appraise at about $590,000 or higher then you should be able to combine into a jumbo loan and lower your interest rate. If you are in a high limit county, you could potentially do this without needing a jumbo loan and that number may be a bit more flexible depending on the investor. If the home appraises in the mid $500Ks or lower, you will likely need to stay put to be in the best situation.
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May 05
Depending on the value, you may have a few options. Please feel free to contact me through my profile so that we can discuss.
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May 05
 
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