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Home >> Lending >> Home Mortgage
Combining Loans While Refinancing
I want to refinance my house and combine all of my loans into one as well as reside in my house. How can I combine getting funds for this project with refinancing my house loan?
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 You should first consult with your bank or a mortgage lender. The issue here is what is the lendable value of your home, how much of a loan will you qualify for (with one new payment and these debts paid) and do you meet other qualifications they have? The lender is interested in collateral, equal to or of a greater value than the amount you want to borrow, to know that you could repay a loan of that amount, and that your history indicates you would repay it.
Absent any state laws that restrict the terms you want, you should be able to find a lender willing to do this type of a transaction. While speaking with your banker, you should ask which is better for you, to refinance your existing loan, or to instead get a home equity loan or a home equity line of credit. You may be able to use one of these to accomplish the same thing, but leave your current home loan intact at (most likely) a better rate than is available today. A line of credit is a revolving product that allows you to borrow and repay many, many times. These loan products have favorable terms, not unlike a mortgage.
Published on BankingQuestions.com 11/27/07
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