Question: I have both 1st and 2nd with BoA, i received a letter saying that new payment for my home equity line of credit starting this month (june) include principal and interest. I called BoA but they can not do anything for me since my first was re-financed in 2010. Is there any suggestion? I great appreciate anything that would help my payment more affordable. Thanks
Answer: – You have a few options. If your credit is still good, income is consistent and you have equity you might try to refinance with a different lender that will combine your payment into one. This can be difficult if any of those 3 are left out. Right now with the right lender and qualifications, you can refinance your home equity line of credit with an interest rate between 3 and 4 percent. With those kind of rates, you can really get your mortgage payment reduced.
The other option would be settle your 2nd mortgage and pay it off completely. If you have a case where your home is worth more than what you owe or you have negative equity, you might be able to get the lender to agree to take less than what is owed as full payment. By going this route, you get to stay in your home, keep your good credit and reduce your mortgage payment considerably by eliminating your 2nd mortgage. It’s a great way gain equity or for a lot of homeowner at least get rid of negative equity. We settle note for homeowners if you don’t want to do it yourself.