I was wondering, can one home loan, and still refinance their first mortgage? Thank you?

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We have bad decisions and having to pay debts, a mortgage would be useful, and reduce payments combined, but we are also looking to refinance in another 3-6 months, but there is no way that can pay the biggest chunk of our debt by then.

  1. Reply
    Open Book Advisors™
    May 16, 2011 at 4:44 am

    Yes you can have a heloc and a 1st. But if you’re going to refi in 3-6 mos why would you get one now.

    Do you have a reason for waiting that long? Waiting for a 30 day to be 12 mos old?

    Will you have the equity in your home to refi in 3-6 mos if you take out a heloc now?

    Contact a broker who can tell you what doing x may do to you plans for y

    Open Book Advisors™

  2. Reply
    May 16, 2011 at 4:52 am

    if you take out a second then try to refinance the first, you can not get more equity out of the first note over the second note,

    so you can refinance for the same amount on the loan to get a better rate but you will not be able to increase the first loan amount borrowed on the property, since that would cause the first note to become junior on the add part to the home equity which came first

  3. Reply
    Shawna Marie
    May 16, 2011 at 5:46 am

    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.

  4. Reply
    Shane S
    May 16, 2011 at 5:54 am

    Yes, you can. However, this would not make the most sense if you are looking to refi in the next 3-6 mo. Unless, you are waiting for a prepay to expire and you cannot wait! I recently refied into an FHA loan 30 yr fix at 6% with no prepay. I was also able to go 95% of what my home is worht and payoff a ton of debt. This is unheard in the real world. check out FHA, there are a few restrictions but it was easy for the most part. Try http://www.lowerfixedrates.com they set me up nicely!

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