quadrupledeac
Active member
Stupid question (maybe) for the bankers on the board.
I am currently refinancing my first mortgage as part of HARP 2 eligibility. My second mortgage term (initially a 5 year balloon at 6.25%) is up soon and I will need to refinance as I plan on staying in my current home. The remaining balance of my second mortgage is $160,000. I am currently paying $1800 a month which at the current interest rate would pay off the loan in 10 years. The bank that is financing my second mortgage is suggesting I will need to increase my monthly payment or make a sizable payment on the principle in order for them to sign the subordination agreement that is necessary for refinancing of my first mortgage to proceed. Is this customary? What refinancing terms on my second mortgage can I expect? Can I shop my second mortgage around or am I locked in to the terms that my current bank offers? Thanks in advance for the advice.
I am currently refinancing my first mortgage as part of HARP 2 eligibility. My second mortgage term (initially a 5 year balloon at 6.25%) is up soon and I will need to refinance as I plan on staying in my current home. The remaining balance of my second mortgage is $160,000. I am currently paying $1800 a month which at the current interest rate would pay off the loan in 10 years. The bank that is financing my second mortgage is suggesting I will need to increase my monthly payment or make a sizable payment on the principle in order for them to sign the subordination agreement that is necessary for refinancing of my first mortgage to proceed. Is this customary? What refinancing terms on my second mortgage can I expect? Can I shop my second mortgage around or am I locked in to the terms that my current bank offers? Thanks in advance for the advice.