Is it possible to refinance 1st & 2nd mortgages for a brand new house immediately after I close?
I am required to use my builder’s mortgage company b/c they are giving me incentives but the rates are 0.5% higher than other lendes on both the 1st and 2nd mortgages.
I am wondering if I would be able to refinance both mortgages immediately after I close? What do I need to consider? What questions do I need to ask?
Sale Price: $960k
New House in California
Interest Rates for 1st/2nd mortgages: 6.75%/8.675%
Excellent FICO scores – high 700s to low 800s
You can refinance any time you like. Do make sure there are no pre-pay penalties on your builder mortgage.
it can be done but i would take a serious look at the builders morgage contract, you will have to pay the closing cost again an the penalty for refienancing that early alot of morgages has a 5 year penalty. you might be better off keeping the builder morgage see what the long term cost will be on both morgages but add in the cost on the new morgage closing an penalites, an see which is cheaper in the long run
If you’d like I can take a look at your situation for you. I am a loan consultant and do business in 15 states. The company I work for is called equity consultants. We do business in CA. Our toll-free number is 800-546-9080 Ext 199 ask for me Rob Snodgrass
I’m in the office from 9am-7pm every day. Just remember that we are three hours ahead of you. I can do it for you. Hope to hear from you. here is our website http://www.equityconsultants.com
Thanks
rob
Yes, YEs, YES! I see this happen all the time and help correct it just as often. You need to make sure that neither of your mortgages carry a prepayment penalty. Most likely the 2nd mortgage has an early closure fee of some kind, but these are often under $500 and thus should not be a deal breaker on your size mortgage. I am nationwide mortgage broker in No. California with 20 years experience and would be happy to run some figures for you. There are many things to consider when choosing your new replacement loans like if the property has appreciated since you signed your purchase contract. You may even be able to combine both of your loans into one mortgage! Please contact me: Steve@SLarson.com or via http://www.SLarson.com/Contact
Regards,
Steve Larson