Posted by JoeS on February 26, 2002 at 23:01:32:
The county’s assessed value has little to do with an actual appraisal. They tend to get mixed up. If your credit is good to excellent, you should be able to do a rate and term refi at 90%. Find a GOOD mortgage broker.
Refinance question - Posted by vboveia
Posted by vboveia on February 26, 2002 at 21:09:47:
Would it be feasible to obtain a new refinance loan to encompass a 1st and 2nd mortgage? I currently own a home with about $55,000 outstanding on the 1st and $34,000 on the second. I’m estimating the market value of the home to be about $96,000 but the county’s appraised value is only $75,000. I’m wondering if the standard 80% LTV still applies for refinance loans - if not, a new loan with an average lower interest rate would save me a significant amount of $$ (the current low end interest rates for my area are at about 6.3% right now; the 1st mortgage is at 6.5% while the second is at a whopping 11.5%)
Has anyone had any experience with this? Any comments or advice would be much appreciated. BTW, I live in Nebraska.
VB
Thanks for the suggestions! (NT) - Posted by vboveia
Posted by vboveia on February 27, 2002 at 09:48:09:
NT
Re: Refinance question - Posted by youngsterz (UT)
Posted by youngsterz (UT) on February 27, 2002 at 24:31:44:
If this home is your primary residence, look at just refinancing the 2nd with a home equity line of credit. It makes no sense to refi the first mortgage. The fees to do so make it a costly thing, with no real return for you. The line of credit, though, can be done for up to 95% of the value (at Wells Fargo, and likely other major national banks) and can be had for current variable rates of 6%-7%, usually with no or minimal fees. No origination fees, usually, just a flat fee, like $100.
If it’s a non-owner occupied, your best bet is the 90% refi, but you may have to pay the difference between the 90% and the appraised value, plus closing costs. That cost may not be worth it to lower the interest rate. Run the numbers and see.