when refinancing and you get a loan from your equity do you pay back the loan do they tack it to your mortgage

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7 Comments
  1. Reply
    The Whopper
    April 30, 2011 at 12:01 am

    you pay back what ya borrow.

  2. Reply
    Diamond in the Rough
    April 30, 2011 at 12:25 am

    Yes…….and they calculate a new payment for the new loan. (the previous loan and the new loan, an new interest rates)

  3. Reply
    TesnoBay
    April 30, 2011 at 12:56 am

    refinancing and getting a loan from equity are two different things. If you get an equity loan, in addition to your mortgage, it is a seperate payment, because it is a different loan.

    If you refinance, say to a lower interest rate on your existing mortgage, it is a “new” loan, but at a different rate and payment schedule.

    If you have both a mortgage and equity, you have two payments

  4. Reply
    mmorganloans
    April 30, 2011 at 1:22 am

    When you refi, they take mortgage and equity loans and any other debts to be paid off; ex: credit cards, car payments, etc.

    Then the process is to find a lender that you can qualify with. How much are you trying to refi for? ex; if your mortgage, equity loan, and other debts equal 200,000.
    What is the value of your home? Are you borrowing 100% of what your house is worth or lower?

    Your Broker will then do research on rates. If your credit score is 640 or higher, you will find a better rate.

    When it’s all done, everything that you requested will be paid off, and then you will have one payment instead of 2 or more.

    If you would like any more info you can email me at mmorganloans@yahoo.com, I am a Mortgage Broker from Washington State.

  5. Reply
    ladybug
    April 30, 2011 at 1:40 am

    If you refinance you will be getting a completely new loan that pays off your old mortgage and starts you paying back the new loan at a lower rate, and any additional equity that you got back will be included in the payments.

    If you just took out a home equity loan with out refinancing: If the loan was taken from a bank other than the bank your mortgage is through you will have two separate payments. If the loan is from the same bank it is up to the bank if they send you two payments or combine the two into one payment. Even if they combine them into one payment they are two separate loans and if you pay extra to pay one off sooner you need to specify where you want the extra principal to go (the two loans may be at different interest rates).

  6. Reply
    Searchlight Crusade
    April 30, 2011 at 1:41 am

    I think you’re asking about cash out loans. You will owe your current balance, plus loan fees, plus whatever cash you take, and you will make payments based upon the new loan amount, term, and rate. Yes, you need to pay it back, or at least make payments toward paying it back until you sell or refinance again.

  7. Reply
    MortgageGuy
    April 30, 2011 at 1:55 am

    Sounds like you have a few questions about mortgages that your mortgage broker didnt answer for you…

    I saw both of your positings, and i think you are a little confused…

    WHen you buy a house, you are borrowing money from a lender to get the house… Technically you “own it” but really the lender “OWNS IT” They have a lien against your property for the amount you owe…

    Now if your house appreciates, and goes up in value, then you have equity… You can then borrow more money against your equity… If you take say a $ 20,000 loan against the equity, you now have an additional $ 20,000 to pay back on a monthly basis…

    Nothing is free… Lenders only “lend money” to make money, or interest…

    Id be happy to anser more questions, or assist you in a refiance..

    Feel free to call me at any tinme and i will be happy to explain things thoroughly, and assist you with a refinance..

    Jason Fry
    Providential Bancorp
    jasonf@providential.com
    312-264-6448

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