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Refinance first with underwater CLTV?

I have a first mortgage ($405K) and a HELOC ($115K), both with Countrywide (BofA).  Market value of the house is $503K (bought it for $560K two years ago).  Very good credit and high income.  I'd like to refinance the first - but will countrywide subordinate the second with a CLTV of around 103%?  Will banks consider a refinance of the first at the prevailing 30 year rates, or will the rate be higher given the lack of equity?  I'd like to get away from Countrywide if possible - any advice?  
  • August 24 2009 - Strongsville
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Answers (2)

Sounds possible.  Easiest will be if you can keep your first at 80% of appraisal value.  Otherwise, it will depend if your first is Fannie Mae or Freddie Mac, that will allow you to utilize Refi Plus and avoid PMI if you need to to exceed 80%.

As to Countrywide subordinating, I would think it has a strong chance as long as you are improving your overall situation and avoiding a sharp increase to the amount owed on the existing first.

There are a few price adjustments with high CLTV, but not major ones.  I think your case is borderline, but has potential to work.
  • August 24 2009
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It does look like your case is borderline, you will need to call into countrywideboa and ask them these questions directly.  I would try several reps within the bank as most don't have a good grasp of guidelines.
  • August 24 2009
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