Any one doing a 85% LTV Refi?

Asked by Beep, San Jose, CA Mon Aug 6, 2012

We are in the zip 95120. We have a conforming jumbo (3.63%, 5yr ARM) and a HELOC (5.63%). Our equity might be anywhere between 12-15%. Our attempts at refinancing have faced difficulties owing mostly to the valuation. Are there are any mortgage providers willing to take on a 15% LTV out there?

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Gregorio Den…, , San Diego, CA
Mon Aug 6, 2012
If you are paying off a HELOC, it is considered a cash out refinance and therefore generally will require 75% LTV for Freddie Mac or 60% for Fannie Mae. Finding 85% cash out on a conforming jumbo will be very difficult if not impossible. FHA is an option, but you would be paying mortgage insurance that may negate the benefit. If you decide to proceed with someone on this, make sure they understand the guidelines for conforming jumbos (High Balance conforming with Fannie Mae and Super conforming with Freddie Mac) and they are not just attempting the refinance at your expense, but that they have an actual source of funding for this. I know of no 85% LTV cash out financing for a loan amount above $417,000 in San Jose. The last thing you want to do is spring for another appraisal for a loan officer to throw it up against a wall to see if it sticks!
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1 vote
Mitchell Pea…, Agent, San Jose, CA
Mon Aug 6, 2012
Dear Financing:
Yes. I'm willing to attempt this refinance. When did you take out the ARM?
Mitchell Pearce, Mortgage Banker and Realtor
2 votes
Maria Cipoll…, Agent, Coral Springs, FL
Sat Oct 20, 2012
You can only refinance with 25percent down or if you have 25 percent equity in your property. Your best option will be contacting a mortgage broker, they have access to many banks, private lenders and many different programs.

Best of Luck,

Maria Cipollone

Century 21 Tenace
1 vote
Ivan Diaz, Mortgage Broker Or Lender, 79936
Mon Aug 6, 2012
Hello Beep,

If the second was used to purchase the property...then it would not be considered cash out. In addition, there is one wholesale lender that wouldn't consider it cash out if you haven't ued the line of credit in the last 12 mos.

Your refinance is a little tougher and will utlimately depend on how long you plan to keep your home. Refinancing the 1st mortgage and subordinating the second is another option.

Hope this helps. If you have any questions...Don't hesitate to reach out!

Ivan Diaz
Home Mortgage Consultant
(415) 271-7740
1 vote
Mitchell Pea…, Agent, San Jose, CA
Mon Aug 6, 2012
Gregorio is correct. You would want to do this re-fi if your goal is to lock in the current low rate on the ARM by making it a fixed rate loan. That can be done. The key issue for rate, and advise-ability of proceeding will be the date you took out your ARM. Incidentally, you want to use a mortgage banker, not a broker. A banker is a direct lender who does not charge brokerage fees.
Mitchell Pearce
1 vote
charles butt…, Agent, san jose, CA
Mon Aug 6, 2012
Thank you for your question Beep:

I need more information from you to give you a good answer to your question.

I do work with an excellent lender who may be able to get you the refinancing that you are looking for, however the lender will need far more information.

I recommend that you call me at my cell phone: (408)509-6218

Thank you,
Charles Butterfield MBA
Real Estate Broker/REALTOR
American Realty
Cell Phone: (408)509-6218
Fax: (408)269-3597
Email Address:
1 vote
Dwayne Allen, Agent, San Jose, CA
Tue Mar 5, 2013
The good news is your house in 95120 and the market is great right now and your house is probably worth more than you think. All the answers have been right on, I agree just contact a Mortgage Broker I recommend Paula Reinhold 707-490-7322 I have seen her get loans to go through that I that was not possible.

0 votes
Beep, Home Buyer, San Jose, CA
Tue Aug 7, 2012
Really appreciate the answers here - gives us a perspective we werent getting speaking to our current providers. Thanks everyone!
0 votes
Rich Homer, Agent, NAPLES, FL
Mon Aug 6, 2012
0 votes
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