Serious, factual, answers regarding re-fi and home equity…?

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I bought my home in March of 2003, my mother co-signed for me, but does not live with us or pay on the mortgage. I would like to look into either a refinance or home equity loan, with a goal of perhaps borrowing $ 12-15,000 to pay debts, etc. Is it possible to do this and still maintain the same interest rate and monthly payment? Where would be the best place to inquire about the process, my credit union where I handle the rest of my finances, the company that I have the mortgage with, or an outside company?
No, I did not commit fraud thank you very much. I simply mentioned it in my question in case it made a difference. I’m no expert but I’m sure if it were somehow not legal to have a co-signer that did not reside with you then I would never have gotten the loan in the first place!

  1. Reply
    May 1, 2011 at 4:54 am

    There are a number of factors that will affect the answer. These factors include the outstanding balance on your existing loan, the loan-to-value ratio (i.e. how much you have borrowed vs. how much your home is worth) and the rate of interest you are paying as compared to the rate you qualify for today.

    The short answer is that borrowing more money means making larger payments.

    I suggest you contact a mortgage banker, as they will have a widest range of products for you to choose from. A mortgage broker depends exclusively on outside underwriting and is generally stuck with larger fees, and a bank is stuck with its own products only.

    The company I work for, Mission Hills Mortgage, has access to over 4000 products, including our internal banking assets, so we are one source that represents the best of both worlds. I would be happy to speak with you and take a closer look at the situation.

    800-880-1853, ask for Todd

  2. Reply
    May 1, 2011 at 5:46 am

    I would check with your current lender first. Because they are your present servicer, the rates might be better than most.

    Now, here’s the big question…are you going to be able to qualify for an even larger home loan without your mother being a non-occupying co-signer? Did you commit fraud on your current mortgage and list her as living with you?

    Once you speak with your current lender, contact other companies, such as banks and brokers and shop for the best loan.

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