Equity Home Loans

Home Loan and Home Equity Loan Refinance question?

If you have a home loan and a home equity loan, if you refinance can you roll the two into one or do you always have to keep the two seperate?

Public Comments

1. if enough equity is built up or 80% of the current home market value can cover the mortgage balance of both 1st and 2nd loans, then you can roll it into a single loan and get a better rate..
2. I'm pretty sure if you can refinance to the max of your home worth you can inform them that this is what you want to do. You don't have to keep them separate.
3. You can roll them into one, but you only want to do it if you will not exceed 80% of the appraised value of your home. If you exceed the 80% then you will get slammed with PMI, which is a pain to get off.
4. In almost all cases you can roll them both into one loan, applicable regulations for apply as per the state you live in and seasoning requirements may also apply if the second was done less than 12 months. Check this out with your lender before you pay for anything. I did that with my home in Florida and there was no problems with it. Hope this helps
5. Yes this is possible depending on the equity position in your home. If you go over 80% of the loan to value, then you will be required to have PMI. PMI now could be tax deductible depending on how much you make. You would have to see if it makes sense to go over 80%. Good luck! CA Lender
6. Read this hopefully this will help you. http://www.everything-home-loan.blogspot.com/