Profile picture for arunachs

I have a First and HELOC. Can this be consolidated in to one Mortgage.

Is HELOC considered as cash out and therefore hard to convert back.
  • July 25 2012 - Milpitas
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Answers (4)

Profile picture for CA Direct Lending
Not necessarily.  We (and probably other lenders) will also not consider this a cash-out transaction when refinancing the 1st and the total of all receipts used for home improvement.  

Worst case scenario is that you refinance the entire combined balance at 80% CLTV as a cash-out transaction if it still saves you money. 
  • July 26 2012
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Profile picture for arunachs
Combined LTV is 80%. Heloc was used for the home and there was no cah out at that time. Now it looks bad.
  • July 25 2012
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Profile picture for CA Direct Lending
Some lenders won't consider it a cash-out transaction if the equity line was used to purchase the home or in some cases if there have been no draws within the past 12 months.
  • July 25 2012
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Profile picture for Brian GFL Capital
It depends on the equity position of your home.
HELOC consolidations are treated like credit card consolidations or a cash-out" refinance. the guidelines are a bit tighter when it comes to "cash-out" refinances than for a rate-term refinance.

do you know what your home is worth in relation to the balances on your first and second mortgages?
  • July 25 2012
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