Need refinance advice on a second loan

Asked by Tim Murphy, San Francisco, CA Tue Jan 27, 2009

I would like to refinance my home's second loan, that is with Countrywide. I had a whopping 11% APR, has dropped closer to 8% now since it fluctuates. I've been playing catch-up on my 3 months behind on the mortgage for 1-1/2 years now.

Countrywide doesn't want to refinance because they say that it's an equity line on the home type of mortgage.

Is this true, that I really can't be considered for refinance in terms of the government helping bail me out because this is not the primary loan?

any ideas or options would be greatly appreciated. thank you.

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Steven Ornel…, Agent, Fremont, CA
Tue Jan 27, 2009
Hi Tim, potential light at the end of the tunnel....

FHA loans, as of 1/09, provide for non-cashout refinances loans up to 97.75% of appraised value (not counting Up Front Mortgage Insurance Premium and any Energy Efficient Mortgage, which can effectively take you above this amount). If you have had no additional equity draws on the 2nd within the last 12 months, FHA will allow the 1st/2nd to be a rate & term refi into a single loan.

Real question: your current equity.

If you want to shoot me your address (offline via email) I can run a Comparative Market Analysis (CMA) to see where you might be value wise to see if this is an option.

Best, Steve
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Tim Murphy, , San Francisco, CA
Tue Jan 27, 2009
hi Steve,

yes, i doubt there's enough equity in it. darn.
0 votes
Steven Ornel…, Agent, Fremont, CA
Tue Jan 27, 2009
Tim, key question: Do you have equity in your home? If so, how much, and what is the current value of your home?

Unfortunately, in many cases there simply is not enough equity in the home to refinance.

-Steve
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