Was in a bit of a bidding war so offered all-cash for my new coop apartment like so: Purchase price: 650k 500k cash 100k HELOC on my primary residence adjustable rate currently about 6%. 20 year term. 50k 401k loan, with which I pay myself interest at 6.5%, but only a five year term so high payments. After closing, I would like to refinance the two loans into a first mortgage at 30 or 15 years in... [more]
Was in a bit of a bidding war so offered all-cash for my new coop apartment like so:
Purchase price: 650k
500k cash
100k HELOC on my primary residence adjustable rate currently about 6%. 20 year term.
50k 401k loan, with which I pay myself interest at 6.5%, but only a five year term so high payments.
After closing, I would like to refinance the two loans into a first mortgage at 30 or 15 years in order to keep payments a bit lower.
I've made some calls, and been told more than once that they don't do cash-out first mortgages on second homes. They suggest refinancing the first mortgage on my primary residence.
I don't want to do that because for various reasons this apartment will be in my name only, and primary residence is owned by my spouse and me, and I don't want to burden spouse with the liability towards a home she doesn't own.
Any suggestions as to where to go to get such a loan?
I have A++ credit, and total housing payments for BOTH properties will be under 30% of income.
Thanks in advance.
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Response by Anton
over 6 years ago
Posts: 507
Member since: May 2019
Why the HELOC interest so high? Anyways, why not just tell them your new place is your primary home, so that you can get loan
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Response by streetsmart
over 6 years ago
Posts: 883
Member since: Apr 2009
Mortgage Broker here; have contacted a few lenders, will get back.
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Response by streetsmart
over 6 years ago
Posts: 883
Member since: Apr 2009
Most of my lenders do coop refinancing on second homes. But if your primary residence is in the city, then that would not be acceptable.
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Response by ronwass
over 6 years ago
Posts: 17
Member since: Dec 2018
Anton, if I make my primary residence NYC, then I would be subject to higher interest rates. The HELOC is adjustable. They are always higher than regular mortgages.
Streetsmart, coop is secondary residence. Primary is out of the city. Will be happy to contact you. This forum doesn't do PMs does it.
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Response by 30yrs_RE_20_in_REO
over 6 years ago
Posts: 9877
Member since: Mar 2009
Did you look into just refinancing it all into your primary residence? Maybe the interest rate would be slightly lower?
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Response by Anton
over 6 years ago
Posts: 507
Member since: May 2019
ronwass, do you mean NYC residents are subject to higher interest rates than outer boroughs?
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Response by ronwass
over 6 years ago
Posts: 17
Member since: Dec 2018
Sorry, meant to say that if I make my primary residence NYC, then I would have much higher income taxes.
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Response by ronwass
over 6 years ago
Posts: 17
Member since: Dec 2018
And Anton, as I said in the original post, I don't want to refinance the whole thing on the primary, because of different ownership situations.
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Response by streetsmart
over 6 years ago
Posts: 883
Member since: Apr 2009
Ronwass, feel free to contact me at EllenSilverman@esfundingco.com.
Licensed Mortgage Broker, NMLS#60631
A fewlenders told me they would refinance second home coops.
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Why the HELOC interest so high? Anyways, why not just tell them your new place is your primary home, so that you can get loan
Mortgage Broker here; have contacted a few lenders, will get back.
Most of my lenders do coop refinancing on second homes. But if your primary residence is in the city, then that would not be acceptable.
Anton, if I make my primary residence NYC, then I would be subject to higher interest rates. The HELOC is adjustable. They are always higher than regular mortgages.
Streetsmart, coop is secondary residence. Primary is out of the city. Will be happy to contact you. This forum doesn't do PMs does it.
Did you look into just refinancing it all into your primary residence? Maybe the interest rate would be slightly lower?
ronwass, do you mean NYC residents are subject to higher interest rates than outer boroughs?
Sorry, meant to say that if I make my primary residence NYC, then I would have much higher income taxes.
And Anton, as I said in the original post, I don't want to refinance the whole thing on the primary, because of different ownership situations.
Ronwass, feel free to contact me at EllenSilverman@esfundingco.com.
Licensed Mortgage Broker, NMLS#60631
A fewlenders told me they would refinance second home coops.