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Three years ago I lucked into a special offer from my city. They were rebuilding due to hurricane damage and trying to get first time home buyers to purchase homes in the area. My house was new and was listed at 146,000. The city took a 7 year mortgage on 60,000 of which they will erase 20percent a year starting year three and as long as I don't move their $60,000 will be paid of after year 7. I am in year 4 right now and I only had to take an origiNal mortgage of $86,000. After applying the federal 7k credit that year I got a new house for 79k. It was a pretty crazy deal and I am still happy with my purchase. However few mortgage companies wanted to take the original mortgage due to the special circumstances. This left me with close to a 6 percent rate. It's not a real bad rate but with my good credit I know I know I could re-finance and save a lot of cash if I could just find another company willing to work around this situation. Any suggestions? Has anyone here refinanced their home with a second mortgage and have any suggestions.

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psyteet1 said:   Three years ago I lucked into a special offer from my city. They were rebuilding due to hurricane damage and trying to get first time home buyers to purchase homes in the area. My house was new and was listed at 146,000. The city took a 7 year mortgage on 60,000 of which they will erase 20percent a year starting year three and as long as I don't move their $60,000 will be paid of after year 7. I am in year 4 right now and I only had to take an origiNal mortgage of $86,000. After applying the federal 7k credit that year I got a new house for 79k. It was a pretty crazy deal and I am still happy with my purchase. However few mortgage companies wanted to take the original mortgage due to the special circumstances. This left me with close to a 6 percent rate. It's not a real bad rate but with my good credit I know I know I could re-finance and save a lot of cash if I could just find another company willing to work around this situation. Any suggestions? Has anyone here refinanced their home with a second mortgage and have any suggestions.

Not really sure why your 1st mortgage would care ... as long as total LTV is reasonable ( 80-90 % ). As long as the deal with the city is subordinate to their loan, they will get their money 1st anyhow. I wouldn't think it would be too hard to find someone that will do it, find a mortgage broker to work with. That would be your best access to multiple underwriters.

You really need to determine if the 2nd mortgage will subordinate to the refi of first. So contact the holder of 2nd to find out the details and present that (they will subordinate) to the lender. Find a first mortgage lender that doesnt require upfront costs/application fees, if you are concerned, and apply. You may be being discouraged, but if you state you wish to apply, they are required to take your application, and cant legally discourage you or deny you from applying. There are some locales that have special programs such as this, the NE coming to mind. You wont know until you apply and they review the 2nd mortg. docs.

Maybe I don't understand the mortgage you explained, but I would just ride it out.



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