Just wondering, can one have a home equity loan, and still refinance their 1st mortgage? Thank you?
Written By: admin on June 15, 2009
8 Comments
We made some terrible decisions and need to pay of some debt, a home equity loan would help and lower the combined payments, but we are also looking to refi in another 3-6 months, but there is no way we can pay of the largest chunk of our debt before then.
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Tags: bad decisions, chunk, Home Equity, home equity loanTags: bad decisions, chunk, home equity loan
Yes, you CAN refinance just the first mortgage, and you CAN take out more cash with just the first, but the 2nd mortgage lender has to agree to "subordinate" (which means to stay in 2nd lien position).
Lien position is not based on the type of loan (since you can have a home equity line of credit in 1st lien position). Lien position is based on the date and time which the lien was filed. When you do a 1st and 2nd at the same time, they file the 1st and then the 2nd. When a lender agrees to "subordinate", they are agreeing to stay in 2nd lien position even though the new 1st mortgage was filed AFTER.
If you have anymore questions, feel free to e-mail me.
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You simply have to be able say ‘no, thanks at that price’ at least once to the dealer. This gives them a strong message that you are serious about your research.
You should also bring a piece of paper to the dealership and make sure you do all the math of the finance calculations yourself. The point is not that they will do the math incorrect. The point is you will see exactly how the deal is structured. Do not be worried to take the time to do this or look like a fool for mapping out your car deal in the dealership.
My dad swears by this process, http://tinyurl.com/knflt6