Refinance Options? (loan, interest rate, credit card, 30 year fixed)

[pmsmith2032]

I currently have a 2nd mortgage that was used to buy some land a number of years ago. Unfortunately, the interest rate I received was extremely high (10% on $50k). Any ideas on how to refinance to get a lower rate? Thanks in advance!

[Pfhtex]

Investigate bundling your existing first and second mortgages into one new mortgage.

How much do you owe on each mortgage, and how much do you think you could sell your home for, if you had to sell it within a few months?

BTW, you mention it was used to buy some land. Are your first and second mortgages on your home that you live in?

[pmsmith2032]

Thanks for the response. Our first mortgage is on our primary residence and the second mortgage is on land we purchased out of state for a future vacation home (no building on it as of now). Unfortunately, I believe we still owe more on our first mortgage than what our home is currently worth. We purchased our home about 8 years ago right before the housing crash and our home lost approximately 1/3 of it's original value shortly after we bought it.

[Pfhtex]

If the second mortgage is on land you purchased, that means you also have a first mortgage on the land that you purchased?

Or did you take out a Second Mortgage on your primary residence and use that cash to buy the land?

[pmsmith2032]

I believe the latter....we took a second mortgage on our primary residence and used it to buy the land.

[Pfhtex]

What kind of loan is the first mortgage? Can you be a little more specific regarding the amounts you owe on each one and the value of the property?

[pmsmith2032]

The first mortgage is a 30 year fixed at 4.375%. We owe approximately $255k on the first loan and our home is worth around $235k.

[Pfhtex]

So the liens are over $300k and the value is $235-ish.

Might there be an option to pay the 2nd mortgage off by cashing out on the land? That's all I'm seeing, aside from just trying to accelerate payments on the 2nd and get it over with.

[pmsmith2032]

We've been trying to sell the land for a couple of years now with no luck.

[Pfhtex]

I'm sorry about your situation. It's very important to know that the Second Mortgage can be just as much trouble as a First mortgage if you don't pay it. It's not an Installment Loan - - if worse comes to worse, just make sure both the house payments are made, stop paying credit cards, even cars, before that.

It doesn't seem like your situation is dire, I'm just covering all the bases. If worse comes to worse, a Chapter 13 Bankruptcy would help protect your home. **I am not a Bankruptcy Attorney, and you should consult one before making such decisions.