Refinance Home Equity

Lucas · by **Lucas** » 28 Nov 2009, 18:14

Is it possible to refinance your mortgage or get a home equity loan if you have been in your house for 6 month

I want to see if I can lower my monthly payments.

Alessandra · by **Alessandra** » 28 Nov 2009, 18:14

My question to you is why? What is driving you to refinance your rates or apply for a loan after 6 months of living in the house?

Adam · by **Adam** » 28 Nov 2009, 18:14

If I refinance my home to cash out equity and end up foreclosing in the future, what can happen to me?

I like many others am in financial trouble and am having problems paying my mortgage.
I'm thinking about refinancing my home (for no more than it's current market value) and taking my equity so I can pay off my car and a credit card.
If I do that, and still end up facing foreclosure in the future - what can happen to me besides having my credit ruined?
I live in Arizona - the law here states that - "A lender may not bring a deficiency suit against a person who lost a property that is 2.5 acres or less at a foreclosure provided the property is a single one-family or a single two-family dwelling."
I fall into that catagory. Basicly, I'm wondering about future pit-falls if the worst case scenerio happens and I do end up foreclosing after I do a cash-out refi.

Fernando · by **Fernando** » 28 Nov 2009, 18:14

That is not the law here in Texas but it sounds like you will be OK there except....if you do this and somehow they can tell you planned it all along...I bet that falls into the category of defrauding a bank (bank fraud).

If you innocently have hard times though, your credit is ruined, but it doesn't sound like you can have a deficiency filed against you.

The federal government is discussing passing a law that might protect you against the "phantom income" problem. "Phantom income" is when a mortgage company turns any shortfall into the IRS and you owe taxes on that amount of the mortgage you didn't pay back.

Anjanette · by **Anjanette** » 28 Nov 2009, 18:14

I have about $20,000 worth of equity in my rental property and I would like to pay off approx $15,000 of lingering dept so I can just have no outgoing bills and just pay the house payment that the tennants are paying already and no bills. I am confused at what would be the best way for me to go either refinance or home equity loan or a home equity line of credit?
My credit score is about 650. thank you for the help

Keli · by **Keli** » 28 Nov 2009, 18:14

Don't take unsecured debt that you have now and secure it with your house. Understand that taking out a home equity loan or refinancing is not "paying off" your $15K worth of debt, it is TRANSFERRING it. With the housing market being how it is at the moment, don't put that debt on your house. You may find yourself upside down in the mortgage in a year if you do. Just keep working on the debt and get it paid off.

Lilia · by **Lilia** » 28 Nov 2009, 18:14

Can I refinance a home equity loan if I've only had it a couple of months?

Problem, we recently had our home up for sale, but have since changed our mind. We applied for a small home equity loan through our local bank (17,000)so my husband could buy a car and we could pay off a couple of bills. In the meantime, a larger mortgage co that we also inquired with about this loan told us that they could consolidate all of our debt, and save us $600 every month even if we doubled our payment. So, we went with the larger co, however after going through the whole process with them , they came back and said that since our home was recently on the market, we would have to wait 60 more days to get a loan. (this would be 100% equity LTV) My question is, if we go with the smaller loan from our local bank (who doesn't give 100% LTV loans), could we in fact get a home equity loan a few months down the road, pay off the 17000 loan and also pay off the rest of our debt? Is there some rule about how long after you receive a home equity loan before applying for another

Rachele · by **Rachele** » 28 Nov 2009, 18:14

Yes, you can do that. However,

You will have to pay closing costs twice.

There is often a prepayment penalty on Home Equity loans if they are closed in less than 2 or 3 years.

the higher LTV loan will likely have a higher interest rate.

Take both of those into account before you make your decision

Sophia · by **Sophia** » 28 Nov 2009, 18:14

Can you refinance an adjustable rate home equity loan that was taken out as a 80/20 loan last year? Can you refinance an adjustable rate home equity loan that was taken out as a 80/20 loan last year?

Therese · by **Therese** » 28 Nov 2009, 18:14

If the appraised value of your home has risen and depending on the terms of your 80/20 you could possibly refi. Go back to your Lender (if you were satisfied) and see what they can do to help you. You will still have to pay closing cost again or you do in most cases. And be sure you have paid all your payments on time. Maybe this will help you.

Refinance Home Equity

Is it possible to refinance your mortgage or get a home...

If I refinance my home to cash out equity and end up...

Refinance or home equity loan?

Can I refinance a home equity loan if I've only had...

Can you refinance an adjustable rate home equity loan that..

LINKS

TWEETS

Who is online