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I have a primary mortgage of 230,000 at 5.25% 22years remaining on loan with BOA
HELOC 250,000 4 years left of interest only based on prime rate + 1.3%, so currently about 4.5%' and goes to 20years fixed based on market rates in 4 years. Loan with Citibank. With both mortgages, home underwater by about 80,000
Here are some options that I've investigated:
1. Refi both loans into one fixed rate loan: LTV percentage to high--both lenders say no
2. HARP 2.0- spoke to lenders, program will only allow for 1st mortgage refi. My situation is unique since HELOC is higher than than primary loan. Also home is not underwater if you look at just primary loan.
3. Refi HELOC only- Citibank says no, they have no incentive to do that. They're in second place on the loan.
3. Refi primary only without HARP- Citibank said they would take second place if BOA agreed to refinance. Unfortunately due to HELOC amount, home value, income to debt ratio and husband's bad credit, BOA says no.
It seems that I have only one option here. 1. Try to pay down HELOC as much as possible before it converts to a 20yr fixed in 4years and hope the that the market improves to increase home values allowing for traditional refi--assuming that husband's credit improves.
If you've read up to this point--thank you! Can you think of another other option I have to address the HELOC? I'm 39 and husband is 46. My goal is to reduce life of loan interest payments and have stability in terms of knowing exactly what my mortgage payments will be year to year.
HELOC 250,000 4 years left of interest only based on prime rate + 1.3%, so currently about 4.5%' and goes to 20years fixed based on market rates in 4 years. Loan with Citibank. With both mortgages, home underwater by about 80,000
Here are some options that I've investigated:
1. Refi both loans into one fixed rate loan: LTV percentage to high--both lenders say no
2. HARP 2.0- spoke to lenders, program will only allow for 1st mortgage refi. My situation is unique since HELOC is higher than than primary loan. Also home is not underwater if you look at just primary loan.
3. Refi HELOC only- Citibank says no, they have no incentive to do that. They're in second place on the loan.
3. Refi primary only without HARP- Citibank said they would take second place if BOA agreed to refinance. Unfortunately due to HELOC amount, home value, income to debt ratio and husband's bad credit, BOA says no.
It seems that I have only one option here. 1. Try to pay down HELOC as much as possible before it converts to a 20yr fixed in 4years and hope the that the market improves to increase home values allowing for traditional refi--assuming that husband's credit improves.
If you've read up to this point--thank you! Can you think of another other option I have to address the HELOC? I'm 39 and husband is 46. My goal is to reduce life of loan interest payments and have stability in terms of knowing exactly what my mortgage payments will be year to year.
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