2nd mortgage ?

[rkaaes]

Me and my husband filed C7 bk 2 years ago because of high debt from a failed business. We reaffirmed our mortgage and 2nd mortgage. The balance on the first mortgage is $144,000. The balance on the second is approximately $20,000 and the interest rate is high(13.9 %). The equity on the house is approximately $120,000. Is it possible to take a 2nd mortgage out with a lower interest rate to refinance the first 2nd mortgage or should we wait until November when it will be 2 years after discharge and refinance the 2nd mortage into the first. My first mortgage rate is at 6% fixed through a VA. My scores are mid to high 600's. My DH scores are tanked around 600 and I'm in the process of cleaning it up.

Or is there another way to do this that I don't know about. Would like to get rid of the 2nd mortgage or lower the existing APR on the second. The interest is too high.

[firstsource]

Please confirm that you owe 164,000 on a home worth 285,000.
It will not be possible for you to get a better rate on your second mortgage, as they are a very risky loan, and you need very high scores to get a decent rate on one. Once you get up to middle scores of 660/680 you can probably get a HELOC loan. They are available with a fixed rate and with an adjustible rate. The fixed rate is going to save you some money for sure.
Charles

[creditfix]

You should consult some mortgage brokers. Do not give them permission to pull your credit. Ask them questions based on the scores that you presently have. :p

[firstsource]

And I would go one step further. Whoever you ask to pull your credit, ask them to send your file to you in electronic form, so you can send this to other brokers when/if you want to shop around.
Charles

[rkaaes]

Yes, I owe $165,00 on a home worth $285,00. We live in CA. We've been in the house for 9 1/2 years.

On a HELOC loan, where is the best place to look for one. And also, can I take a loan out in just my name since my scores are so much better than DH or will they look at both scores since the house is in both of our names.

Thanks for the info :)

[firstsource]

I would suggest either US BANK or CitiBank. I normally use USBANK, but either are good.
If your income is enough for the loan, then use yours only. If you need the additional income to make the DTI work, then whoever makes 52% or more of the money, that is the person whose credit will be used.

Charles