All Forum Posts by: Benjamin Fuller

Thanks, Will! Banks are telling me they couldn't consolidate the the mortgage and the HELOC without a cash out refi (70% needed). I could refi the mortgage with no cash out (75% needed) but I couldn't payoff the HELOC.

However my 3.5 interest rate is strong vs. the 4% I've been told but that includes at least 2 to 3 points which I'm not crazy about. I think I may ride the ship for a couple of more years to gain the equity and get the 70% LTV cash out to accomplish the goals above.

I have a duplex with 266k left on FHA 3.5% mortgage and 30k HELOC. It's currently valued at least 400k. I'm looking to consolidate the two for two goals for more cash flow:

1) Eliminate PMI (approx $200)

2) Eliminate HELOC interest payment (approx $150)

All banks I have called need at least 30% LTV, none with 20-25%.

I'm trying to think creatively here and wondering if I can create an LLC and essentially buy my own property for 296k. This will accomplish my goals above and also the liability perks with an LLC.

Curious to see if something like this is possible, OR, if anyone has other suggestions to my goals above.

Thanks!

Ben

Two part question

FIRST

I own and rent a 2 family home which has a market value of at least 380k (as of 9/2019, actual by HELOC appraisal properly more now).

I owe 267K on my FHA loan at 3.5% (original mortgage was for 296k).

I have a HELOC balance of 30k which I make monthly interest payments on for $120.

I pay about $200 a month in PMI.

I'm trying to figure out how I can consolidate my HELOC and current mortgage into a new mortgage and eliminate the interest payments on the HELOC AND PMI knowing I have 80% LTV.

SECOND

If I'm able to consolidate the above for let's say a 300k mortgage, could I pull ANOTHER HELOC on the property knowing I have roughly 20% LTV based on the 380k value.