Tweet
Hi all,
Need advice regarding my wish to refinance my house. Ideally, I would like to combine my 1st and 2nd, but open to other options.
Background:
Purchased home in 2007 for $270,000
First mortgage balance(BOFA): $200K at 6.00% fixed 30 years. Monthly payment with taxes & insurance:
$1722.
Second mortgage balance: $39,000 at 8.125% for 30 years. Monthly payment: $300.00
No other debt.
Estimated house value is below what I owe. I estimate about $225-$235K at best.
I do qualify with BOFA for the Making Homes Affordable to refinance the first mortgage, however the interest rates for those refinances are terrible. The closing costs are high as well. You may end up saving only about $75 per month (not including the payback for the cash outlay for the CC). They will not touch the second mortgage.
I understand that paying down the second mortgage is the best bet, but I have not studied any products that mortgage companies offer recently. I have always been discouraged and considered it not an option ever since the housing crash.
Are there any good options that some of you have considered or looked into?
Thanks in advance,
jason
Need advice regarding my wish to refinance my house. Ideally, I would like to combine my 1st and 2nd, but open to other options.
Background:
Purchased home in 2007 for $270,000
First mortgage balance(BOFA): $200K at 6.00% fixed 30 years. Monthly payment with taxes & insurance:
$1722.
Second mortgage balance: $39,000 at 8.125% for 30 years. Monthly payment: $300.00
No other debt.
Estimated house value is below what I owe. I estimate about $225-$235K at best.
I do qualify with BOFA for the Making Homes Affordable to refinance the first mortgage, however the interest rates for those refinances are terrible. The closing costs are high as well. You may end up saving only about $75 per month (not including the payback for the cash outlay for the CC). They will not touch the second mortgage.
I understand that paying down the second mortgage is the best bet, but I have not studied any products that mortgage companies offer recently. I have always been discouraged and considered it not an option ever since the housing crash.
Are there any good options that some of you have considered or looked into?
Thanks in advance,
jason