Refinance help needed in Orange, CA

Was the second mortgage use to acquire the home or was it originated after you bought the home?

OK. So the pay off of that second is considered cash out even though you are not going to be receiving cash back at closing. You can not do cash out with an interest only option. This is probably why you are being told you need to subordinate the second. You can do cash out on a 5/1 ARM but the loan would have to be fully amortized, not interest only. If you need to discuss this with me I can be reached at 877-662-3321 x-102. Joe Shamie.

You are running into some guideline issues as the 2nd is treated as a "cash out" since it was not purchase money..meaning used to buy your home. Therefore you are being told you need to sub the 2nd for that product. You do have some options that may work that requires more detail. Feel free to contact me for a no obligation mortgage consultation...877-369-4319. Dan Paladin

I think I have an option for you. I have an Investor/Lender that would consider Rate and Term depending on 12 month usage history. Give me a call and I can get more details. Matt Baker (480) 747-6116. I am licensed in CA.

What is the LTV? You can go up to 97% LTV to consolidate the 2nd on a 5/1 ARM, but you would sacrifice the Int only option. That could be better than not getting the 2nd paid off at all.Hope this helps.Patrick McCarthyNorthpointe Bank866-901-3576