Anyone know if it is true that once you take an equity loan on your home, that you can not re-finance it ever again? The amount owed is substantially less than the current value of the home.

Gary

 

Yes you can refinance it!

 

Thanks Colin, i thought so, but the bank where we took out the home equity loan is saying that once done as a home equity, it has to remain that way forever. My thoughts were, it is just a loan, and a refinance basically pays that loan off and begins anew. My wife was getting the runaround from the bank and was getting upset, thus the reason for my post.

Gary

 

Depending on your situation you can refi your 1st and 2nd independent of each other or combine them if you want. To say you can't refi ever again is crazy talk! There are many banks willing to take your money and it would be wise to shop around.

 

Switch banks.

Its not as easy to re-fi as it was, but if you are in good standing credit wise and income wise, you should not have any trouble. Have you tried a credit union?

 

Banks have money to lend......... for re-fi's and other loans.
But it seems they will only loan it to people who have 4 or 5 times that much in the bank.
I tried to refi Casa Del Shovelhead, we have enough in assets to pay the remaining mortgage off two times, Wells Fargo treated us like we were on welfare.
We have been with them for better than 30 years, and paid off one mortgage, never had a late payment, and always paid $200 - $300 more than the monthly payment towards the principle.... but not for much longer.............

 

There's your problem, they aren't making all their money on you!

 

It can be done. Bank of America would not let you for a long time. They gave in about 6 months ago. Needless to say, I am not with Bank of America anymore....

 

I forgot about that Scott...That is a good point...Heard that years ago...Banks don't like you paying debt a head of time...And it is right...They want min payments to make more money...over a longer term...

Bet you forgot about that one Ed...I know I did...

 

There is one thing....If you need a small loan...Don't let the banks convince you to take a loan against your home...They are hoping you will start using that loan, and it's also a lien against your home....Even if you don't use the loan..It's a bit of a trap...To start borrowing against your home..

Ok....So I watch Suze Orman...Though she may come across not so welll...She does have some common sence advice...

Which sometimes I forget...

 

I had a home equity loan with Wells Fargo, I refied from a 5.0% into a 3.25 rolling the remaining balance of the home equity into the mortgage. Wells Fargo was the worst bank I have ever dealt with. We were getting late payment phone calls a week before the payment was due. We paid it electronically I would have they receipt number that they issue on hand to tell the caller it was paid prior to the due date so why do you continually call? After the 4or 5th call I had had enough. My equity loan was originally with Wachovia but Wells Fargo bought them out. Funny once they contacted by my credit union for the payoff for the refi they continually called and emailed about refinancing with them.

Unfortunately I can't post what I said to them on the phone or email.

My credit union was fantastic to deal with, with the only exception being there was more paper work due to the new regulations.

Good luck.

 

I went into our local bank of A small town bank branch a good number of years ago and asked the female manager a simple question "what is your 15 year fixed home loan rate currently" got a bunch of nonsense and then i told her listen i have a 14 year old home on 40 acres that i had put 50 percent down on when i bought it 4 years ago so for me to qualify would be no problem ! Next she starts mumbling some dribble about farms so i chopped her off and said sternly you don't have a clue what you are doing !! And apparently you are NOT EVER going to make any money from me and walked out !!

Can't even answer a simple question like that = what would they be like if you had a real problem

 

I'll never deal with Nationwide Insurance or Chase or any other large bank after wrecking my pickup 3 years ago. Nationwide wouldn't put a value on the truck til they had the payoff info. Then Chase would call three times a day wanting payment, and when I told them I had X dollars I could send, they said they couldn't accept anything less than a full payment. When I said that I was trying to make a good will gesture to them, but they were refusing it, they said I can say it anyhow I want, but they can't accept anything less than full payment. And that it's illegal to change any terms of the loan, the only thing I could do was to apply for another loan to pay off that one.

Their collectors haven't pushed for payment real hard. I have other things I am going to pay off first.