Anyone refinance recently with an 80/10/10?
![[Post New]](/jforum/templates/default/images/icon_minipost_new.gif){kind=icon}
Anonymous
| The places I've spoken with that offer 80/10/10 only seem to offer it for original mortgages, not refinances. Has anyone refinanced and gotten this type of loan? Recommendations would be great - thanks! |
Anonymous
| We bought a house last year and that was not even an option for our broker. I would be surprised if anyone still had them. Who would securitize the second mortgage? That's like poison to a bank. They lost tons on second mortgages. |
Anonymous
| I was told that they wouldn't give me a new one, but they will surrogate my original second mortgage. |
Anonymous
| Subrogate. |
Anonymous
Please explain your unhelpful comment. |
Anonymous
My iPhone autocorrected. My second loan would be subrogated, not surrogated. |
Anonymous
How is this responding to the question of has anyone refinanced recently with an 80/10/10? |
Anonymous
Okay, let me spell it out. I typed that I had been offered to subrogate a second loan, thus essentially having an 80/10 loan, but there was a typo so I corrected it. I was told that I couldn't refi the second loan or roll it in to the new mortgage. Are you the OP? If so, you are an ass as I was the only responder that actually tried to do this and I was trying to help by sharing my experience. |
Anonymous
The common term used is to subordinate the 2nd lien where you keep the same terms of the 2nd lien and do a rate and term refinance for the 80% part. The 2nd lien has to agree to the new terms of the 1st lien and your property has to appraise accordingly. If the terms on the current 2nd lien are crazy high, you could combine the two (as long as the 2nd lien was only used to buy the property and not take add'l cash out), but you'd have to pay MI (either monthly or upfront). You have to compare the 2 options to see which would save you more. |
Anonymous
Thank you. What are the reasons the 2nd lienholder may not agree? Currently, my first and second mortgage are held by tge same bank and they would not like to change that? Could they refuse for that reason? |
Anonymous
| To be honest I haven't really heard about 2nd liens not subordinating. Back in 2005-06 the requirement would be that the new terms of the loan would have to be beneficial to the borrower (i.e. reducing interest rate, not taking cash out). The only way I can see them hesitating would be if you were increasing the payment on 1st substantially (going from interest only to principle and interest or 30 year to 15 year), but if you can show that your income justifies it, I don't even see that being an issue. I just wanted to support my statement and let you know that there is an approval that has to be done, but again, it's usually very low level and shouldn't make you worry. If you qualify for 1st refinance the 2nd subordinating shouldn't be a problem. They will charge a nominal fee ($150ish)? To process the request as it requires a new note to be recorded. |
Anonymous
| Is it possible to go from a fixed 30 year loan to an 80/10 loan? It sounds to me like people who are refinancing into 80/10s already have 80/10s? We would really like to get rid of our PMI and get a lower rate and think that the 80/10 would be the best option, if we can find someone who will do it. |
Anonymous
Yeah that would be a lot harder. The only thing I would recommend is to see about doing a rate and term refi and depending on your final LTV buying the PMI off upfront either with cash or pay for it with a slightly higher rate. The lower the LTV, higher credit score, the cheaper it is (an LTV of 85 and Fico of 740 will be less than half the cost of 95% LTV with 680 Fico). You really have to put all the options to see if it's worth it and also determine how long it would take for you to break even with paying for the MI upfront...for example, if it were to cost you $5000 to pay the MI upfront but you'd be saving the $500 monthly Mi payment, you'd break even after month 10 and so on. A good loan officer will be able to give you all the options. Sadly, there are many that don't even know this yet alone know you can buy MI upfront. So look around for a seasoned loan officer. Good luck! |
Anonymous
|
PP again. Here is a link to PMi to give you a gauge of how much it would cost to buy Mi upfront. You need to know your LTV, credit score, and percentage of coverage required by lender, but this should give you a good idea
http://www.pmi-us.com/media/pdf/rates/pmi_SuperSingle_Nationwide.pdf Oh and another thing you want to consider when comparing is how long you've been paying your current mortgage and approx how much longer you have to pay with MI before it falls off. |