Small mortgage refi problems

3 Replies

Not sure what section to put this in. 

Anyways, I have 37,000 left owed on my 10acres and home, which just appraised at 83,000. My interest rate is 6% adjustable to 14%. I would like to refinance the 37,000 with a fixed interest rate, and also get a lower payment, which would make some room for some other investment ideas I have going on. But it seems nobody wants to refinance this amount.  As soon as you say 37, they immediately are  uninterested. I have considered pulling all the equity out, refinancing the whole amount, about 64,000, giving me somewhere around 25,000 equity, and putting that towards my other ideas, but in the state of Texas you are not allowed to have Ag Exemptions when you cash out a refi, meaning I would have to cancel my ag exemptions on my acreage, which costs me thousands of dollars and raises my property taxes tremendously. Local banks want 8-10% interest.  Really don't know what to do here. It's holding up a lot of other ideas i'm trying to jump on though. Suggestions?

Originally posted by @Casey Randall Lenz :

Not sure what section to put this in. 

Anyways, I have 37,000 left owed on my 10acres and home, which just appraised at 83,000. My interest rate is 6% adjustable to 14%. I would like to refinance the 37,000 with a fixed interest rate, and also get a lower payment, which would make some room for some other investment ideas I have going on. But it seems nobody wants to refinance this amount.  As soon as you say 37, they immediately are  uninterested. I have considered pulling all the equity out, refinancing the whole amount, about 64,000, giving me somewhere around 25,000 equity, and putting that towards my other ideas, but in the state of Texas you are not allowed to have Ag Exemptions when you cash out a refi, meaning I would have to cancel my ag exemptions on my acreage, which costs me thousands of dollars and raises my property taxes tremendously. Local banks want 8-10% interest.  Really don't know what to do here. It's holding up a lot of other ideas i'm trying to jump on though. Suggestions?

 Hi Casey,

Find $30k-$50k homes listed for sale in your area, call the listing agents, say you want to write an offer but your lender can't go that low, ask for a lender referral. 

Good listing agents will always have a lender that can lend on their listing. 

If that does not work, find out the poorest zip code in Texas and find out who is doing loans in that zip code.

Great idea, maybe there will be some at a decent interest rate.  From what I hear, closing costs on a mortgage or refi in texas, costs the same amount, whether the loan is 30,000, or 300,000. So if it costs several thousand to do the loan, and there is low interest rate on a low loan, they have came out even and the loan was not even profitable.  Seems like a flaw in the Texas laws on lending that needs looked at if this is true. But somebody has a way around it i'm sure, I'll make some calls tomorrow. Thanks for the idea!

Originally posted by @Casey Randall Lenz :

Not sure what section to put this in. 

Anyways, I have 37,000 left owed on my 10acres and home, which just appraised at 83,000. My interest rate is 6% adjustable to 14%. I would like to refinance the 37,000 with a fixed interest rate, and also get a lower payment, which would make some room for some other investment ideas I have going on. But it seems nobody wants to refinance this amount.  As soon as you say 37, they immediately are  uninterested. I have considered pulling all the equity out, refinancing the whole amount, about 64,000, giving me somewhere around 25,000 equity, and putting that towards my other ideas, but in the state of Texas you are not allowed to have Ag Exemptions when you cash out a refi, meaning I would have to cancel my ag exemptions on my acreage, which costs me thousands of dollars and raises my property taxes tremendously. Local banks want 8-10% interest.  Really don't know what to do here. It's holding up a lot of other ideas i'm trying to jump on though. Suggestions?

 Might check with a local bank or local credit union to see if they make small loans or home equity loans.

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