Can I refinance with less than 20% equity (without coming up with the cash to hit 20% at closing)

[Anonymous]

I'd love to take advantage of the super low interest rates, but we'd have to come up with a decent amount of cash at closing, which we'd rather not do. Has anyone refinanced recently with less than 20% equity?

[Anonymous]

Took a second mortgage out for the difference. Second mortgage was a little higher interest rate than the first, but still low.

[Anonymous]

No because the mortgage companies and banks are fucked and are a bunch of asshiles. Every bank has seen their valuation plummet. We should have let them all fail.

[Anonymous]

Anonymous wrote:Took a second mortgage out for the difference. Second mortgage was a little higher interest rate than the first, but still low.

How do you go about getting the second mortgage? Do you usually get it through the same lender who is giving you the first?

[Anonymous]

We refinanced last year, and no lender offered us a second mortgage (although we didn't specifically ask - also, we already had a 2nd that we ended up paying off). They said if we wanted to refinance with less than 20% equity, we would need PMI. We ended up just paying off the 2nd mortgage rather than going with the PMI.

[Anonymous]

The super-low interest rates are for those homeowners who are willing to actually have some skin in the game. No bank is going to loan out money at an insanely low rate to people who would "rather not" invest "a decent amount" of their own funds.

[Anonymous]

Anonymous wrote:The super-low interest rates are for those homeowners who are willing to actually have some skin in the game. No bank is going to loan out money at an insanely low rate to people who would "rather not" invest "a decent amount" of their own funds.

Obnoxious and short-sighted comment PP. At higher price points, people with 15+% equity can certainly have more than a "decent amount" of money invested.

[Anonymous]

aren't the government programs of the past couple years for people who DON'T have 20% equity? I know they haven't panned out as they were supposed to, but I think that is what they are intended to do.

[Anonymous]

Yes. But you will pay a premium for the privilege. Either you will pay mortgage insurance or have to take secon mortgage. It is worthwhile, but because or the mortgage insurance yo may not see a benefit for many years(when the mortgage insurance goes away). FHA lends to 95%.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Took a second mortgage out for the difference. Second mortgage was a little higher interest rate than the first, but still low.

How do you go about getting the second mortgage? Do you usually get it through the same lender who is giving you the first?

Yes, that's what I did. We closed on both at the same time. Double the paperwork.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Took a second mortgage out for the difference. Second mortgage was a little higher interest rate than the first, but still low.

How do you go about getting the second mortgage? Do you usually get it through the same lender who is giving you the first?

Yes, that's what I did. We closed on both at the same time. Double the paperwork.

Oh, and no PMI.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Took a second mortgage out for the difference. Second mortgage was a little higher interest rate than the first, but still low.

How do you go about getting the second mortgage? Do you usually get it through the same lender who is giving you the first?

Yes, that's what I did. We closed on both at the same time. Double the paperwork.

Oh, and no PMI.

What lender did you use? Were you happy with them?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Took a second mortgage out for the difference. Second mortgage was a little higher interest rate than the first, but still low.

How do you go about getting the second mortgage? Do you usually get it through the same lender who is giving you the first?

Yes, that's what I did. We closed on both at the same time. Double the paperwork.

Oh, and no PMI.

What lender did you use? Were you happy with them?

BB and T. Yes, happy. I've been banking with them for years and have had my mortgages with them for more than a decade.

[Anonymous]

You will be able to now under HARP II if your current loan was sold to Fannie Mae or Feddie Mac before June 2009. Ours was not and we had to pay down the principle to get to 20 percent equity in order to refinance, but I know two other couples who were able to refinance under HARP II with less than 20 percent equity and without having to pay PMI. The program is fairly new.

[Anonymous]

Anonymous wrote:You will be able to now under HARP II if your current loan was sold to Fannie Mae or Feddie Mac before June 2009. Ours was not and we had to pay down the principle to get to 20 percent equity in order to refinance, but I know two other couples who were able to refinance under HARP II with less than 20 percent equity and without having to pay PMI. The program is fairly new.

Thanks for the info. Do you know which banks they refinanced with?