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Refi Options?

Hello-I currrently have two mortgages on my property, total of the two is $327k.  First mortgage is at 5.375 and second at 8.75, I did 100% financing 4 years ago.  The first loan was refi'd from 6.375 about a year ago.  My home value is roughly $330k.  I would like to refi into a 20 year fixed as rates are favorable.  I know that I would need to bring cash to the table and able to pay down to 95% ltv or roughly $313k.  Do I have options or am stuck because I refi'd the 1st mortgage already?  I have heard that there are tighter restrictions because what I am seeking to do would be considered a cash out refi.  Thanks in advance for any suggestions.
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August 09 2011 - Tewksbury
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Answers (7)

Look if you are willing to bring cash to the table to get you down to 95% and have a 700 score or better I can do a no PMI loan and save you a ton of money monthly.
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August 11 2011
Assuming you can qualify for the PMI, you shouldn't have a problem on this and it sounds like it would be VERY beneficial for you.  FHA might be the way to go here.  I'd look at a 95% scenario using conventional and I'd compare that to an FHA 15  Year fixed at 97.1%  and see which one looks better.  Feel free to click on me for further analysis.
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August 10 2011
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Confirmed-  your loan is not a cash out. it is a rate/term.
only issue would be what the appraised value is.

If you are going forward, better hop on it as rates are very good right now.
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August 10 2011
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Im double checking with an underwriter right now to make sure this would be a rate/term. If so 95% of value should be  fine.
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August 10 2011
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Hi Clay-
Yes the second is a fixed rate used to buy the house, was not refi'd..only first was refi'd.
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August 10 2011
rsteps, is the 2nd mortgage a fixed rate loan used to buy the property?
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August 10 2011
Based on the information given, it is possible to consolidate the two mortgages into one and reduce the rate of interest you are paying. However, you need to take a couple things into consideration:

1) You will have to pay any associated closing costs out of pocket on top of the buying down your principal balance.
2) The new code of conduct for ordering appraisals forces you to pay for an appraisal through an appraisal management company that works with your lender. The AMC will then randomly place the order with a local appraiser. This new practice normally produces poor quality appraisals that will often not provide the value you are hoping for. If the home appraises for less, you may not be able to complete your refinance and be out the money that you spent on the appraisal. 
3) High loan to value loans can have very strict underwriting guidelines.

Before you choose your lender and start the process you should do some research on the cost associated with the loan, what homes are selling for in your neighborhood (foreclosures and short sales included), and the underwriting guidelines for the type of loan you are applying for. 

The last thing you want to do is spend a lot of time and money with no outcome.

Good Luck!
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August 09 2011
 
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