Equity Home Loans

Will companies refinance a mortgage that has no equity so that my payments would be lower?

I have 2 mortgages with a combined total of 65,000, which is also equal to the value of my home. I want to refinance and combine the 2 mortgages. Are there mortgage companies that would be willing to do the financing to combine the 2 mortgages?

Public Comments

1. Don't refi. Call or have a company like mine negotiate your existing mortgage down.
2. You cannot combine the two mortgage if you have no equity and still avoid PMI. No, your payments would not be lower, and you would have to pay for closing costs out of pocket. Lenders are no longer doing 105% loans. If your first mortgage is fixed but your second is an ARM or a baloon, you need to leave it alone until you build enough equity to refinance at 80% LTV WITH the two combined.
3. Today your best combined loan to value is 97.15% (FHA) assuming the 2nd was obtained at time of purchase or was obtained later and is at least 12 months old. You can refinance the 1st mortgage via FHA and subordinate the second (keep it in place) and be 100% or higher of your home's value. You'd do that if you can lower your rate on your 1st mortgage with a new FHA loan.