Hi folks - just wanted to share a great deal with 'yall. We refinanced our 2nd mortgage into a line of credit. The 2nd is currently with Fleet, but they're a pain to deal with lately (high rates, very conservative standards). I've got a BK in 95 but it didn't affect my personal credit- so it takes a little more paperwork to explain, but it's always been do-able. We applied jointly, and the ratios (with the new line) would be: housing-to-income, 20%; total debt-to-income, 36%. Scores were 684 and 698. Fleet offered 60% of what we asked for at prime +2% Citibank wouldn't touch it. Chase offered 80% of what we asked for at prime +.4% GMAC (ditech) offered 120% of what we asked for at prime + 5% (OUCH!). On a whim I looked at the Discover Home Loans site - www.discoverloancenter.com. Absolutely NO problems - people were GREAT to work with. Received conditional approval in 2 days for 100% of what we asked for at prime + 0%. Appraisal, title search all done in a few days, and today (10 days after initially applying) got the loan closing papers (even came with the pen to sign everything with!). The Fed-Ex return envelope (all filled out) was included, and we sent it back. Will have our checks on Wednesday. I cannot say enough wonderful things about Morgan Stanley Dean Witter Credit Corporation (a sister company under the Morgan Stanley umbrella who does the home loans). If anyone is looking for a 1st or 2nd mortgage (or equity line of credit) - save yourself the trouble and go right to these folks. It's quick, painless, and the people are awesome to work with. -mj
How long after you purchase is someone eligible for a home equity line of credit? one year, two years?
Roni- In '96 we closed on a 1st mortgage (with one bank) on June 24 and I closed on the equity loan with another bank on July 29. In '99 when we re-financed the 1st mortgage, they "preapproved" us for an equity line of credit on the spot, and we closed both on the same day (paying off both the old 1st & 2nd). A common trick people are doing now to avoid paying PMI is to do their 1st morts at 80% loan-to-value and then immediately taking a 2nd. The interest is usually a little higher (not much tho!)...and it's all tax deductable (vs. PMI which isn't). Hope that helps- mj
That`s what I did 80% 1rst and 20% 2nd it is great and the seller is also paying the closing costs. My mortgage guy was great and I only have to show up at closing Friday with 800.00 on a mortgage of 132,000
