Profile picture for ndenver

want to re-fi my 1st, leave my 2nd alone account the economy has brought my ltv down, is it possible

down turn economy has brought value of home down but want to take advantage of lower rates, can I leave 2nd  alone and just re-fi 1st at lower rate to apply difference to 2nd, I am guessing since bank that holds second now would not have a problem with riding 2nd at re-fi since they hold the position now- any suggestions, I thought I could roll both to 1 but I think the LTV will be 100% or more now
  • February 12 2009 - Willow Park
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Answers (10)

Yes it is possible.  FHA will allow the second to stay and not be oncerned about the Combined loan to value. Conventional loans the Combined loan to value must be 95% and some lenders will require it to be 90% The second holder will need to agree to subordinate to the new First mortgage. This can be difficult when they see you are upside down.
  • October 14 2009
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The fact is you could refi the first if the 2nd will allow it. The process is an application for a subordination agreement, produced by 2nd lien holder.  I have recently close a couple loans at or close to 100% CLTV or "Combined Loan to Value.  If you you have further questions or need help, please don't hesitate to call!

Frank

  • February 14 2009
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Martin,
I think Emmett is just trying to get the ZIllow Allstar Badge and is zipping through the threads . . .
  • February 12 2009
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Denver,

What are your two loan amounts and what is the value of your home?

Looking forward to that snow later?  I'm in the Springs and it's cold as can be here.  We need it though.
  • February 12 2009
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"M"
Hilarious as usual!  :-)

  • February 12 2009
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Gotta love the tenacity of the DAN MARINO LO's with the GREAT RATE REFI TENT SALE with an LTV over 100%.... Please forward me a rate sheet with that program... I'm a little low on CHARMIN...  Don;t get your feathers ruffled either, just poking a little fun at we pros that so desperately want to raise our hand to "answer" the question that we do not pay attention to what was being asked.  If this were JEOPARDY....
 and the OP was Alex... and the answer is: " suggestions, I thought I could roll both to 1 but I think the LTV will be 100% or more now"  BOOOP BOOP BOOP...   Uh "You may need to include it in on your refinance in order to take advantage of great rates."  I'm sorry  That is in correct.  That puts Greg at $26,641  and Emmett.. you are at -$3,600, but there is still time for Final Jeopardy... The Category:  TARP: SAVIOR OR SHELTER.
  • February 12 2009
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Emmett,
I hate to burst your bubble but didn't you read the OP's post?  Read the last line, "I thought I could roll both to 1 but I think the LTV will be 100% or more now."
Your answer is pretty far fetched based on the above, "Check with your 2nd mortgagee and find out what their limits are. You may need to include it in on your refinance in order to take advantage of great rates."
Can you tell me what Lender will roll both into one, with an LTV greater than 100% to take advantage of the great rates?
READ.

  • February 12 2009
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Ndenver,
With the situation you described, it will not be possible to refinance the 1st mortgage and have the 2nd mortgage stay in 2nd position: subordinate, with a Conventional mortgage.  Though it makes sense the the 2nd lender to do so they simply will not.
Only way you can do this is with FHA as they don't care what the CLTV is but the issue still is with the 2nd mortgage company.
  • February 12 2009
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Profile picture for EmmettSHF
You'll find that most 2nd lien holders now won't let you subordinate beyond 75 or 80% CLTV (combined loan to value). Check with your 2nd mortgagee and find out what their limits are. You may need to include it in on your refinance in order to take advantage of great rates.
  • February 12 2009
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Profile picture for SoCal Engr
You need to get with a local mortgage pro and determine what can be done. If you want to do some homework, you can call the holder of your 2nd and ask to speak to their subordination department. They will tell you what their standard policy is for your area.

I live in SoCal and have a second, and was told they would not resubordinate below 65% CLTV due to my area being identified as a "declining market". I was fortunate in that my CLTV was <65%, but I still ended up paying a $200 fee for the resubordination.

Even if the holder of the 2nd lien initially sounds like they will not resubordinate in your scenario, you should still check with a mortgage pro. Sometimes, they can help get things done that you can't do on your own.
  • February 12 2009
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