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if you wanted to combine both mortgage loans into 1 loan, you would need to pay down your loan balance to roughly 97% of your homes appraisal and refinance into a FHA loan or You maybe eligible to refinance your 1st mortgage thru the HARP program
you may also want to see about using the cabin as collateral for a mortgage too, taking part of the balance off your primary home
these are some suggestions, with only knowing what you have share so far, run these scenarios by a professional in your market
You should be very proud of your credit rating, but that is only 1 part of the lending puzzle. If you have insufficent collarteral as it appears you do, getting financed would be next to impossible
No one will do a cash out refi these days for anything over 80% loan to value. You could possibly go to an FHA combining the two as suggested, depending on max FHA loan size in your county. Sounds like you’re even upside down for that option. Keep in mind that FHA loans now have a steep monthly mortgage insurance premium. You didn’t mention the rates you were at, but would appear that your best bet would be to do a HARP (if you’re eligible) through your current lender, IF your 2nd lien holder would consent. Could do a refi on the cabin to secure funds to potentially pay off the 2nd, but once again, looking at 80% max or you’d have PMI.
House mortgage is 305K. House worth about 350K. Payment 1975. mo. Home equity loan is 223K. Part of home equity funds were used to purchase a cabin currently worth about 120K. Loan payment is 620. mo. So currently paying approx. 2600. mo for both. We’ve never missed a payment and have very good credit. We’d still be about 58K upside down but we’re currently 178K upside down with the cabin not included as part of the mortgage. Our lender says no one would re-fi this for us regardless of our good credit. Is that true??? We have other assets that could be added if necessary to cover the outstanding 58K.
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