Piggyback Refi

muddbellySeptember 1, 2007

Do the "new rules" of mortgage finance allow a borrower with a piggyback ARM to refi the 1st (main) while leaving the 2nd intact? Lets say they have top tier credit, and the main is less than 80%.

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chelone

Fat,dumb, and happy in "paid for" land, I haven't the vaguest notion what you're talking about. And that scares me...

I'm, "all ears".

    Bookmark   September 1, 2007 at 5:21PM
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dave_donhoff

Hi Muddbelly,

Do the "new rules" of mortgage finance allow a borrower with a piggyback ARM to refi the 1st (main) while leaving the 2nd intact?

Sure! You'd be asking the holder of the 2nd (subordinate) lien to re-subordinate to a replacement senior lien.

Not exactly "done all the time" but I've definitely done my share of resubordinations.

The thing is... in MOST cases, when you really analyze the financials, it makes better sense to roll the old 2nd into the new 1st entirely, OR run a new 1st to the 80% level, and cap it with a new 2nd.

Good analysis BEFORE proceeding is the key.

Cheers,
Dave Donhoff
Strategic Equity & Mortgage Planner

    Bookmark   September 1, 2007 at 6:50PM
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muddbelly

Thanks Dave,

That's probably good news for many. I mistakenly thought 100% refis were not obtainable anymore - even with good credit.

    Bookmark   September 1, 2007 at 7:42PM
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