Refinancing to Combine Mortgages or Pull Cash/Equity Out

If you are looking to consolidate mortgages or pull equity (cash) out of your home here are some of the options that are available to you:

Conventional Mortgage
On a conventional mortgage you can finance up to 80% of the current homes value. The loan proceeds can be used to payoff any outstanding mortgage and/or home equity loans as well as taking equity for consolidating other debts, tuition, vacations, etc. Loans are available up to $417,000.

Terms available on a Conventional mortgage will vary depending on the amount of equity you have and your credit score.

FHA Mortgage
The maximum advance on an FHA mortgage can vary depending on the characteristics of your loan. Loans are limited to $271,050. Here are the general guidelines:

If you are strictly combining a first and second mortgage (home equity loan) and the second mortgage has been in place for at least 12 months. You are able to refinance the two loans and roll in your closing cost up to a total of 97.75% of your homes current value (some restrictions may apply). You cannot combine both loans and take cash/equity out of the home and go to 97.75%.

If you are combining loans and/or taking cash/equity out of the home you are able to do so provided you do not exceed 85% of the homes current value. The loan proceeds can be used for anything you would like.

FHA mortgages require Mortgage Insurance as well as an escrow account for taxes and insurance.

If you would like to refinance and are not looking to borrow additional cash/equity and/or combine mortgages, you may be better suited for the options provided by President Obama's Homeowner Affordability plan. Please click here for details on those options.