Just wondering, can one have a home equity...

[PeggyL]

...loan, and still refinance their 1st mortgage? Thank you? We made some bad decisions and need to pay of some debt, a home equity loan would help and lower the combined payments, but we are also looking to refi in another 3-6 months, but there is no way we can pay of the largest chunk of our debt before then.

[Open Book Advisors™]

Yes you can have a heloc and a 1st. But if you're going to refi in 3-6 mos why would you get one now.Do you have a reason for waiting that long? Waiting for a 30 day to be 12 mos old?Will you have the equity in your home to refi in 3-6 mos if you take out a heloc now?Contact a broker who can tell you what doing x may do to you plans for yOpen Book Advisors™

[Shawna Marie]

Yes, you CAN refinance just the first mortgage, and you CAN take out more cash with just the first, but the 2nd mortgage lender has to agree to "subordinate" (which means to stay in 2nd lien position). Lien position is not based on the type of loan (since you can have a home equity line of credit in 1st lien position). Lien position is based on the date and time which the lien was filed. When you do a 1st and 2nd at the same time, they file the 1st and then the 2nd. When a lender agrees to "subordinate", they are agreeing to stay in 2nd lien position even though the new 1st mortgage was filed AFTER.If you have anymore questions, feel free to e-mail me.

[Mixed S]

If you are a first time borrower of a home equity loan it is imperative that you have a checklist of essential questions that you need to ask each and every lender. The answers to these questions will provide a valuable reference to base your comparisons on. What’s the interest rate? Knowing this is crucial. The interest rate will determinepercentage by which the adjustable rate will change. What is the Annual Percentage Rate or APR? The APR on the home equity loan will determine the yearly payment you will need to make towards this.The higher the payment in terms of points, the lower is the interest rate.