Question:
I currently have a interest only Jumbo loan at 5.5% that is fixed for another 5 years. I also have a variable rate line of credit, at current rate of 4.5%. I am concerned about my line of credit rate escalating in the next year. Is there a way to refinance both or at least the line of credit to a fixed rate without escalating my payments to much?
Answer:
Due to current market conditions and continual challenges to market liquidity, the jumbo mortgage markets are not very favorable right now. Interest only loans are also "out of fashion" as the media continues to pummel against them. Therefore, there are really no buyers on the secondary markets for these types of loan programs. We would potentially be able to look at a refinance in which we would be able to combine the 1st and 2nd loans, but we would need a substantial amount of equity in the property in order to do so. We currently are offering jumbo fixed rates on a fully amortized basis (meaning you pay principle and interest when making the payments) but the payment will certainly go up several hundred dollars and maximum new loan amount would be $600,000 total to obtain a decent rate.
If you are interested in this type of scenario, please click on the Apply Now tab at the top of the page and complete the Refinance Application. This will give us enough information to do a no-cost, no-obligation quote for you to see what products and rates are available.
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