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I'm in Charlotte myself and the home appreciation has been good to us!
You could've locked in a rate of 5.625% last week on a 30yr fixed!
Make sure that you're ALREADY in the process of refinancing....submit your application and be ready to LOCK.
Some lenders require an appraisal done before locking in a rate...some require full underwriting approval. Either one can take a few business days..so the rates can go up or down by that time.
2nd home MAY have a price rate hit if the LTV is high.
Quote:
Originally Posted by anifani821
Okay. Need some advice.
Second home. Current mortgage - 6%, HELOC, variable - today at 8.13
My dilemma . . . HELOC is interest only. Need to do something.
Would like to combine both into one loan.
I have hesitated, waiting for rates to come back down a bit b/c I do not want to refinance and end up w/ a loan over 6%. (30 year fixed).
Is now the time to move on refinancing? Since this is second home, will that affect loan rates?
I'm in Charlotte myself and the home appreciation has been good to us!
You could've locked in a rate of 5.625% last week on a 30yr fixed!
Make sure that you're ALREADY in the process of refinancing....submit your application and be ready to LOCK.
Some lenders require an appraisal done before locking in a rate...some require full underwriting approval. Either one can take a few business days..so the rates can go up or down by that time.
2nd home MAY have a price rate hit if the LTV is high.
Oh my. I want to move quickly - was waiting to see if Feds cut rate and how that was reflected on secondary market.
Not sure about appraisal. Owe about $140,000. Would guess appraisal would be conservatively - $249-279. May be higher, but I would rather be conservative. In a resort community. Small home surrounded by much more expensive properties.
Would rather not pay a lot of out of pocket on closing costs, but do not want a rate over 6%. Am I being realistic?
Oh - property is in Watauga County. Permanent residence in Meck.
Any advice is appreciated. Credit is good, don't know if it is considered excellent - not sure if FICO score is over 750 but it is def right around there.
find out who your closing attorney was for the home....they may offer a discount for title fees/title insurance
with that LTV and credit score you should get 6% for today's rate.
You may receive a price hit ....because it's a refinance cash out transaction (when you have a HELOC)
find out who your closing attorney was for the home....they may offer a discount for title fees/title insurance
with that LTV and credit score you should get 6% for today's rate.
You may receive a price hit ....because it's a refinance cash out transaction (when you have a HELOC)
I didn't realize that my wanting to combine a second w/a first would be considered a cash out? I dont' want to take any more out - just want to roll both loans into one. I do appreciate your educating me on this.
Have no clue as to attorney. Loan officer came to our house, we signed papers, end of that. We thought at the time we may sell the property, so the variable interest only HELOC was a good idea, to make improvements to the property. Now, with keeping the property, the interest-only HELOC is a ridiculous situation, even tho our lender has dropped the rate 2 times in the last few months. it had reached a high of 8.75 % several months ago.
I wonder if I should roll dice, wait til after Jan. and see what rates are then. If I could get 5.6% and no points, I would go for it this month and be done with it.
Am I nuts to pursue this? I mean, just how much of a bearing does it have that this is second home? Don't want to take a hard hit on my credit report until I am sure I am going to move forward. Have only talked to lender thus far and their rate (a month back) was 6.275 at that time, and they wanted to roll closing costs into loan, but when I amortized it, didn't really make that much of a difference on the monthly payments. However, I can pay out of pocket on closing costs, if best to go that route.
Thank you for talking to me about this. I do appreciate any insight.
anytime a heloc is taken out it's considered a cash out....especially if you took it out after you bought the home. Fannie Mae Guidelines
some lenders may say the line needs to be open 12months..and they will do it rate/term but those lenders generally offer much higher rates.
you will probably get a good rate but may pay an origination charge...no discount points.
you wont take a 'hard hit' on your credit report.
when they do a mortgage pull your score may drop 3-5 points....and that's not going to make or break your deal. generally anyone with a 700+ credit score will get the same rate as if they had 850.
if you dont plan on owning this home very long then it wont be a point of refinancing....if you plan to own it longer than you may consider the amount in yrs to offset the closing costs.
You have definitely educated me! Had no idea about the FNMA guidelines in re: to HELOCs.
You have been so helpful. Once we decide what to do next, would you mind if I PM you? Finding the right product is essential but I fully believe that having a good relationship w/ a broker you trust can be key to that pursuit.
hopefully the rates will go down soon just make sure you're in that position to lock!
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Thank you so much!
