Q: What happens if we have a 1st mortgage and a 2nd mortgage that combined are 85% of appraised value? Do you think Wells Fargo will subordinate the 2nd mortgage?
A: We cannot speak directly for Wells Fargo, but since you have a pretty solid equity position they should certainly consider it. Many mortgage lenders will only re-subordinate their second lien if they also hold the first, and if Wells is also your first mortgage holder you should have less trouble. If you do have two lenders, you may need to consider refinancing your first to Wells.
- What is a home equity line of credit?
A home equity line of credit is a type of second mortgage that allows homeowners to borrow money using their home as collateral.
- What is a home equity loan?
Homeowners with equity in their property can take out a home equity loan that uses their home as collateral.
- What is a rate and term refinance?
Homeowners have a variety of reasons for refinancing and each reason can indicate that one refinance option or another makes the most sense.
- Is a home equity line of credit tax-deductible?
One of the benefits of homeownership is the availability of a tax deduction for the interest paid on a mortgage.
- Are ten-year fixed-rate mortgages (FRM) available anywhere?
Sure! Virtually all lenders who sell product to Fannie Mae or Freddie Mac will be able to offer you mortgage with a 10-year term. However, interest rates are usually the same as the lender's 15-year offerings.