Posted by John Behle on December 23, 1999 at 23:25:53:
They start discussions and educate all. It also opens the way for others to ask their questions and post their comments.
Merry Christmas.
Would this work? - Posted by Nick
Posted by Nick on December 21, 1999 at 20:14:03:
My being a newbie makes this a question that might be second nature to some of you out there; but I’d like to ask it anyway.
If I were to assume a VA mortgage with a $50k balance due on it, and if the property were worth $80k, and if I then went to refinance it as an owner (in order to pay off the VA loan); would I be able to refinance it for enough to take out some cash or am I limited as to what a lender will allow on a refinance?
I appreciate any reply. Thanks.
Consider a second and the “blended rate” - Posted by John Behle
Posted by John Behle on December 23, 1999 at 14:02:21:
Many second mortgage lenders have less requirements as to the length of ownership. Some will finance above your purchase price (based on appraisal) withing days of you taking title. They are growing fewer, but you may want to check your local banks and their home equity programs - assuming it is owner occupied.
The “blended rate” between the VA first and the second may be comparable to what you could get in a new first. Sometimes as a mortgage banker we use a combination of first and second even in new financing to achieve a better blended rate.
Be sure to take into account points and fees on a refinance of the first, because that may make a world of difference. Many home equity lines and seconds have little or no costs.
Find the right lender - Posted by Michael Morrongiello American Note
Posted by Michael Morrongiello American Note on December 22, 1999 at 14:36:20:
Nick:
If this is an investor own property you may find some lenders resistance to allow you to pull out cash through a refinancing above & beyond what is owed in debt against the property. These lenders like to see you own the investment property for some holding time frame. That could be 6 months or as long as year. This is what lenders call “seasoning of ownership”…
Depending on what interest rate the VA loan is at and your whether or not you have VET status? You may want to pursue a refinacing with them under one of their streamlined programs. You can then pursue placing a 2nd lien against hte property in the future.
Michael Morrongiello
Operations Manager
Re: Would this work? - Posted by Sean
Posted by Sean on December 22, 1999 at 13:50:10:
Normally a lender will limit your loan amount to 80% of the Fair Market Value. Therefore if your property is worth $80,000 they would be willing to loan $64,000 on it.
If you are occupying the property yourself they will also want to ensure that you can make the payments. Normally they will permit your payments to be as high as 28% of your gross income.
I was just offered this same … - Posted by DanM(OR)
Posted by DanM(OR) on December 23, 1999 at 15:59:08:
deal by PNC Bank. I have a phone number in my home office if you need it. They have a website:
The rate was 9.24% Fixed
Term: 1-7 years
100% LTV of todays’ FMV
I have excellent credit, so I am not sure what the rate might be for marginal credit.
Best of luck to you!
Dan Matejsek
Re: Would this work? - Posted by Nick
Posted by Nick on December 22, 1999 at 19:10:28:
Thanks to Sean and to Mike for the answers. I appreciate it.
Re: I was just offered this same … - Posted by Nick
Posted by Nick on December 23, 1999 at 17:00:10:
Thanks again to all who have taken time to answer my question. I appreciate it.
Once I pay my dues and have something worthwhile to contribute; I hope to be able to offer as much help to others with as much helpful information as I have been given by all of you here.
Thanks again and Merry Christmas!!!