Is it possible to refinance 1st & 2nd mortgages for a brand new house immediately after I close?

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3 Responses to “Is it possible to refinance 1st & 2nd mortgages for a brand new house immediately after I close?”

  1. Price is what you pay for value. says:

    6.75% is average for 30 years fix loan.
    8.675 is high of course, but you don't have down payment, lender wants high rates to compensate.
    It is hard to find another lender to give you better rate.

    I would stay away from adjustable loans or interests-only, because housing market continues to slump. Adjustable loan is "toxic", which means if rates go up while housing price stays, you will in bad spot.

    As for interests-only, mortgage payment consists of two parts: interests and principal. Interests are like rent, which doesn't add to the equity to your house. It simply disappear as your pay it. If you want to use interests only loans, might as well rent, especially during market downturn, because housing price won't appreciate.

    Would you consider delaying your plan? As housing market continues to slump, it might save you 10% simply by waiting for a few months. Another way to look at it, you can increase profit by 10% when you are ready to sell it.

    http://money.cnn.com/2006/09/08/real_estate/caught_in_the_bubble/index.htm?postversion=2006090814
    http://money.cnn.com/2006/09/05/real_estate/Ofheo_home_prices/index.htm?postversion=2006090514

    If you want to go ahead with your plan, threaten to back out, they probably will give you incentives without asking you to use their lender.

    Good luck!
    Would you consider dela

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