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Where can I get a HELOC if I have two mortgages on my house?
Posted on 8/16/17 at 8:06 pm
Posted on 8/16/17 at 8:06 pm
Skipping a long and boring story on why I have two mortgages on my house (a 15 year at 3.5 and a 20 at 3.25 -- so consolidating at a higher rate does not make sense), I am looking for advice. The big banks apparently won't give me a heloc Bc they don't want to be third lien. Who would you turn to next? (For me a heloc would be a sort of emergency fund that I'd pay off within a month).
7
Posted on 8/16/17 at 8:19 pm to AndyJ
And paying off the 15 year isn't an option in the time frame you are talking about I suppose.
If not, you have two opinions I would recommend:
Saving account emergency fund.
Throw everything into a market ETF with robin hood, and either sell or loan against margin to cover emergency expenses.
If not, you have two opinions I would recommend:
Saving account emergency fund.
Throw everything into a market ETF with robin hood, and either sell or loan against margin to cover emergency expenses.
Posted on 8/16/17 at 8:21 pm to AndyJ
I don't know of any institutions that will put themselves in 3rd position on a mortgage. Too much risk. Your best bet would probably going to a finance company.
Posted on 8/16/17 at 8:36 pm to AndyJ
Why not consolidate the two into a 15 year at around 3.25%
Or do a cash out refi?
Or do a cash out refi?
Posted on 8/16/17 at 8:40 pm to AndyJ
Why would you not refinance the 1st mortgage? Your current 15 year is at 3.5. Depending on your equity/Loan To Value, a refinance cash out (paying off current 15 and giving you max cash to 80% LTV/CLTV would be a new 15 year loan at 3.5%
My rate today is 3.5%. You would not have a higher rate and you can get get the extra cash out and still only have 2 mortgages.
Edit: I would only use the above option if you actually need the money. If it's in case you need money, then look into a personal line of credit. Rates can be in 6% range, but you only pay back on what you draw as you know. Or see other answers regarding emergency distribution from investments.
My rate today is 3.5%. You would not have a higher rate and you can get get the extra cash out and still only have 2 mortgages.
Edit: I would only use the above option if you actually need the money. If it's in case you need money, then look into a personal line of credit. Rates can be in 6% range, but you only pay back on what you draw as you know. Or see other answers regarding emergency distribution from investments.
This post was edited on 8/16/17 at 8:56 pm
Posted on 8/16/17 at 8:45 pm to AndyJ
...
This post was edited on 8/17/17 at 6:28 am
Posted on 8/16/17 at 11:40 pm to SomethingLikeA
Before trying that, he should make sure that the current 2nd lien holder will agree to subordinate and remain in 2nd position. Otherwise, when he refis the current 1st, it moves to 2nd and it's doubtful that he'll get the same rate.
And anyway, I don't agree with thinking of a HELOC (or any line of credit) as a true emergency fund. If you have a dire emergency or there's some sort of economic shock, that line of credit can disappear instantly. To me, an emergency fund is my money than can be accessed on my terms - not someone else's money than I can borrow (maybe, possibly, hopefully).
And anyway, I don't agree with thinking of a HELOC (or any line of credit) as a true emergency fund. If you have a dire emergency or there's some sort of economic shock, that line of credit can disappear instantly. To me, an emergency fund is my money than can be accessed on my terms - not someone else's money than I can borrow (maybe, possibly, hopefully).
Posted on 8/17/17 at 9:06 am to Jag_Warrior
As others have stated:
1.) Few if any folks are gonna agree to be 3rd lienholder.
2.) Few if any folks in 1st or 2nd lienholder positions will agree to resubordinate to allow you to take a 3rd mortgage out.
3.) You need to look at doing a cash-out refi on either the 1st or 2nd lien positions.
4.) If you are a degenerate who will more than likely lose your home in 2-3 years because of some vice you aren't sharing, go with a hard-money lender. They're out there.
Most of those who'd be interested have a collection department supervised by a guy who's their Uncle named Guido. But hey, it's doable.
1.) Few if any folks are gonna agree to be 3rd lienholder.
2.) Few if any folks in 1st or 2nd lienholder positions will agree to resubordinate to allow you to take a 3rd mortgage out.
3.) You need to look at doing a cash-out refi on either the 1st or 2nd lien positions.
4.) If you are a degenerate who will more than likely lose your home in 2-3 years because of some vice you aren't sharing, go with a hard-money lender. They're out there.
Most of those who'd be interested have a collection department supervised by a guy who's their Uncle named Guido. But hey, it's doable.
Posted on 8/17/17 at 9:31 am to AndyJ
You can't. A HELOC is a 2nd or 1st mortgage itself. In your case it would have to be in the 2nd position. Your best bet is to either refinance both mortgages and cash out any remaining equity or use the remaining equity on a HELOC.
Posted on 8/18/17 at 9:15 am to AndyJ
Thanks guys. It's amazing the great advice people can get here. I appreciate your time.
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