Will Combining Loans Help Save Money?

Date:October 8, 2010 | Author:Lauren Riefflin | Category:Home Mortgage

A lot of factors are in play when it comes to refinancing a home loan. What happens if you have more than one home loan to consider?

Zillow user cag8910 from Los Angeles, CA poses a great question in the Refinance section of Zillow Advice:

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Responses (2)

Shoreview MN Homes for Sale 6:08 AM - Oct 11,2010

This is a great blogging topic. The answer may not be as easy as comparing your loans’ interest rates to the current market rates. Why? Well, a lot depends on whether the home that you’re trying to refinance is a primary residence (i.e. home you live in), or if the property is non-owner occupied (i.e. investment property). If this is your primary residence, you will have much more flexibility with your Loan-to-Value (LTV) ratio. This is how large of a loan you can have on your home compared to its “current” market value. On investment properties, you’ll be faced with a criterion of 70-75% LTV…which means that you’ll have to paydown your current loan(s) with cash to 70-75% LTV even before you can consider refinancing.
JoGreen 6:09 AM - Oct 11,2010

Very good post, now is an interesting time for all those considering there options. With rates at an all time low it is unsurprising many are looking at their finances.