Rob Robertson's Discussions

Let us know what you come up with, Sm04. That's a virtually impossible loan scenario given current market conditions. I'm sure we would all really like to know of any investor, lender, or bank that would consider doing that LTV, given the current market conditions.

Your "friend" should still consult with an attorney. Each state has different rules, but in CA, the only type of mortgage that there is no recourse is a Purchase-Money mortgage. Since your friend paid off that mortgage, his current mortgage is considered a cash out refinance, or "cash out" mortgage.

Sounds like you should be O.K., since you state you have 6 months PITI in the bank, a Combined Loan To Value (CLTV) of approximately 80%, and excellent credit scores. Of course, each lender will have its own restrictions depending on your income source (Self-Employed/Business Owner vs. "Wage Earner") and the number of properties you currently own.I suggest you work with a professional that will take into consideration your short and long term financial goals, and not just getting you through this one loan transaction. Don't just shop by rate and closing costs - this is the typical homeowner's worst mistake when deciding on which loan program is best for their situation. Remember, you get what you pay for, cdfla.Feel free to email me if you have any further questions, comments, or concerns.

tpabroker1 has a valid point, assuming you can set up the 100% one loan with terms that you can live with (assuming that once B of A finished with the loan modication, you were happy with the current rate and new payment).But there are still a few banks/lenders that can set up great 80/20, 75/25, or even 60/40 financing!Example:I just set up a client with a 99.5%CLTV purchase loan... ($4,000 down on a $721,000 Owner Occupied purchase in Orange County, CA, full income documentation, 722 fico, no reserves required)1st Mortgage: $417,000, 6.00%, 30year fixed (when locked)2nd Mortgage: $300,000, 9.50%, 25 year fixed (when locked)We could have also set up a HELOC @ Prime plus 1.05% for the 2nd, but client preferred the fixed rate option.Depending on your 2nd mortgage amount, I would expect for you to be able to get between 9.00% and 10.50%, depending on 2nd mortgage loan amount, credit score, property location, income documentation, etc...Understand that with 80/20 financing, your best bet if going to be utilizing a mortgage professional that is set up with a lender that actually competes for this type of loan. Most banks/lenders do not want this type of loan because of current mortgage conditions, thus the higher rates for the 2nd mortgage option.However, there are just only a handful of banks/investors that still offer competitive 100% financing solutions, even for Jumbo loan amounts. I'm set up with what I consider one of the best!This is just one of many reasons why it makes sense to use a Mortgage Broker for all of your financing needs: A Great Mortgage Broker is going to have the ability to find the best bank/lender for your personal loan situation, each and every time!Feel free to email me if you have any questions, comment, or concerns.

To answer your question, the (typical) maximum rate on an adjustable rate 2nd mortgage (Home Equity Line of Credit) is 18%. Some can go as high as 24%; only know of one that's lower than 18%.What state are you in? Might be able to refer to you a lender in your area.

Charter One Bank will AVM to 100%CLTV in most cases on Home Equity.

Might have to couple-check if the Home Equity Line is going to be in 1st Position. Some banks/lenders will require a Drive-by appraisal if 1st Position, but this is usually paid for by the lender.

How many units (1-4)? How many months reserves?

Aurora Alt-A (3/1, 5/1, 7/1, 10/1, or 30yr) will go up to $500K loan amount, 1-2 unit, N/O/O, SIVA or NO RATIO, up to 85%LTV with fico of 660 or higher...or...Aurora "Choice Advantage" Hybrid Option Neg-AM ARM (5/1 I/O with minimum pay rate option) will also go up to 85%LTV, SIVA or NO RATIO, N/O/O, with a 720 minimum fico...

Mark, you would have a tough time trying to refinance your loan right now, given your situation.Here's how to find out how much your payment will go up:You'll need to pull out a copy of your note, which is the document that discloses the true terms and conditions of your current mortgage.There might also be a document, "adjustable rate addendum," or another similarly-named form, that will go into more details about your rate adjustment.Should be pretty self-explanatory. What you are looking for is the verbiage that refers to your first rate adjustment. There, the document will disclose your margin (a constant percentage, example: 2.75%) and your index (the specific index that applies to your loan, example: 1 Year LIBOR, 6 month LIBOR, COFI, PRIME, etc...). It will also disclose the maximum adjustment allowed on the first adjustment date (such as 2%, 3%, 5%, or even as high as 6%). Here's an example of how you can figure out your interest rate:So if your rate, now, is 5.0%, your margin is 2.75%, the index is the 1 Year LIBOR (currently 4.63%), and your maximum first adjustment is 5%:Margin = 2.75%Index = 4.63% (Fluctuates)New Rate: 7.38%Not sure of your current loan term or whether or not you have an interest only payment option, so you'll need to plug in the new interest rate into your business calculator, your current loan balance, and your remaining term of your loan to find out your new payment.Good luck!