Do I have any options? (refinance dilemma) (insurance, loan, interest rate)

[AVA]

Here's my problem and ideas or insight would be greatly appreciated

We bought a new home in 2003 a few years later when prices soared we got a heloc for 60k to pay off some cc debt.

Our original mortgage is now at 168k at a little over 6% our heloc is still at 60k

We add $100 to the principal of both loans each month.

The total going out(taxes and insurance too) is $1885 on the first mtg. And around $300 on the heloc.

My house is now worth about 190k


I've tried to refinance but it's not possible due to the heloc.

What can i do in this situation. I'll consider anything!!!!

[399083453]

Option: Sit tight and keep paying both loans for the next 21 years?

[TimtheGuy]

Originally Posted by AVA

Here's my problem and ideas or insight would be greatly appreciated

We bought a new home in 2003 a few years later when prices soared we got a heloc for 60k to pay off some cc debt.

Our original mortgage is now at 168k at a little over 6% our heloc is still at 60k

We add $100 to the principal of both loans each month.

The total going out(taxes and insurance too) is $1885 on the first mtg. And around $300 on the heloc.

My house is now worth about 190k


I've tried to refinance but it's not possible due to the heloc.

What can i do in this situation. I'll consider anything!!!!

Is your 1st mortgage owned by Fannie or Freddie (most are)?

[AVA]

Originally Posted by TimtheGuy

Is your 1st mortgage owned by Fannie or Freddie (most are)?

Bank of America so is that owned by one of them? (I should know this.....)

[Debsi]

Originally Posted by AVA

Bank of America so is that owned by one of them? (I should know this.....)

Links to find out if they own your loan:

Does Fannie or Freddie Own Your Loan?

B of A may be the servicer of your loan (collects payments etc) but the "owner" or investor could still be Freddie Mac or Fannie Mae.

[AVA]

Originally Posted by Debsi

Links to find out if they own your loan:

Does Fannie or Freddie Own Your Loan?

B of A may be the servicer of your loan (collects payments etc) but the "owner" or investor could still be Freddie Mac or Fannie Mae.

Thank you, By using this I discovered Fannie Mae owns the loan.

[Jkgourmet]

But won't the existence of the heloc make him ineligible for HARP?

[Debsi]

Originally Posted by Jkgourmet

But won't the existence of the heloc make him ineligible for HARP?

You're right that you can't roll in a HELOC on a HARP refi, but I thought you could resubordinate the second.

[TimtheGuy]

Originally Posted by Jkgourmet

But won't the existence of the heloc make him ineligible for HARP?

Nope. The OP will only be able to refinance the 1st. The 2nd will have to stay in place. There is no limit on how high the balance or the credit limit is on the 2nd either.

[mortimer]

Originally Posted by AVA

... we got a heloc for 60k to pay off some cc debt. ...

I'd like to point out that paying off cc debt at, maybe, 18-21% ( non-deductible )
with a HELOC is a good idea. Now the rate is under 4% and deductible.

$60k in cc debt? What is that debt now? ( in addition to the $230k in mortgage debt ).

Many people, during the housing boom, saw those $-0- balances and said "Let's go SHOPPING!!" That would be bad.

Originally Posted by AVA

We add $100 to the principal of both loans each month.

Excellent! Note that much of your savings in the payment in a HARP refinance
will be from principle reduction in addition to lowering the interest rate.