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is it possible to refinance a 1st and 2nd mortgage into just one loan?

our current loans are (1) 30yr fixed @ 5.34% and (2) 30fixed @10% with balloon at 15yrs. We purchased in 2007 for $372,500 and still currently owe $330,000. Where, if possible, can we obtain a new loan willing to consolidate the two without taking any cash out. thanks!!
  • March 08 2013 - Temecula
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Answers (3)

Your best chance would be an FHA loan up to 97.75% of current appraisal value.  

For a 2007 purchase in Temecula, I have a feeling the combined loan amounts are likely to exceed curent value, hopefully that is not the case and you would have some options.

If the combined amounts exceed the current property value, you might also have options to refinance the primary loan into a better rate/payment, but only if that loan is either FHA insured or HARP eligible (Fannie Mae or Freddie Mac owned).
  • March 08 2013
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The simple answer to the question posed is yes, it is possible to consolidate a 1st and 2nd mortgage into one loan. 

The question here would be; how much do you think your home is currently worth? Also, did you take out both your current loans at the time of purchase?

As long as comparable homes are selling for at least a little more than you currently owe and both of your loans were original loans used to purchase your house you should have some options. The biggest factor is going to be how much your home is worth today.

Sincerely,
Greg
  • March 08 2013
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Profile picture for Brian GFL Capital
is the $330k the combined amount between the two mortgages? the issue that you will run into is an insufficient amount of equity to combine the two mortgages together. ideally you want to have 75%-80% LTV.

What do you think the home is currently worth? if its more than what you originally paid for it, you might have enough equity to do a debt consolidation refinance. If its less, you might not be able to do so. The appraisal is key the completion of this loan
  • March 08 2013
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