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Financing in 07748 : Real Estate Advice

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  • Home Buying8
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Activity 3
Wed Jun 22, 2011
Scott Butcher answered:
I ran into the situation recently myself and we underwrote according to FNMA regs. Yes, you can keep the HELOC open and re-subordinate to the new first lien.

For underwriting purposes, the HELOC will be counted against your overall Debt to Income ratio by allocating a 1% monthly liability based on the total loan committment for the HELOC. For example, if your HELOC limit is $50,000, then factor in a 1% monthly multiplier (50,000 x 1.00% = $500/month).

If your 'tight' already on your DTI ratio, then the HELOC might push you over the limit. Check with a local banker and disclose the HELOC, run your numbers and hopefully you still have enough room to make the refinance work.

Good luck.
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Sun May 15, 2011
M2715 answered:
I know I 'm sick over it.. not that much better right?.. if interest rates keep dropping I was thinking of trying to refinance again pay closing costs
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Wed May 11, 2011
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