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I would like to break my loan into 2 uneven chunks of, say, 65% & 35%, where I borrow 65% of the loan amount under a 20/30 year fixed rate and the other 35% at a 5/1 or 7/1 ARM.
Is this possible? If yes, how would I go about doing it?
Of course it's possible--the second loan is called the 2nd mortgage. The problem is, the mortgage that is recorded first has priority. That means if you ever went into foreclosure, the proceeds from any sale would first go to pay off the first mortgage. If there wasn't enough to also cover what was owed on the 2nd mortgage, then the holder of the 2nd mortgage would lose out. That's why the value has to be there to justify a lender making a loan as a 2nd mortgage.
Regular mortgages seem tough enough to get these days, with higher down payments and higher loan-to-value ratios. Getting a 2nd mortgage from a second lender would likely be even tougher.
Sure it works, but very few lenders, if any, will take you to a combined loan to value of 100%.
What is the value (percentage) in relation to your mortgages?
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