Can I Get A Home Equity Loan And Get Rid Of The Secon
Q: When i bought the house (600K) the mortgage was split into two pieces 380K + 220K to avoid paying the PMI insurance. The problem is that the 220K has a high interest. I have refinanced the 380K portion to a low interest recently. I know that the house prices have gone up (approx 800K). The question is, can i get a home equity loan and get rid of the second mortgage and hopefully in the end pay a smaller interest on the home equity payments than i would if i continue with the 220K loan as it is. (since it is a subordinate finance loan, i am not being able to refinance it. So please help me specifically answer the Usage of home equity with lower interest rate to pay the subordinate loan question). Also, are there any tax implications?
A: -A home equity loan *is* a second mortgage. So what you're doing is just a form of refinancing the second loan. -If the value is really $800k, you should be able to refi the entire $600k as a single loan. You really bought a $600k house no money down? Should you have bought a cheaper house with a smaller loan? .