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Real Estate Home Mortgages/1st and only loan is a home equity loan

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Expert: Denise Monaco - 7/8/2009


Question
QUESTION: How can my whole mortgage be a home equity loan?

ANSWER: Hi Felicia

It depends on the type of loan you initially took out.  You can have a 1st lien home equity loan.  It should have been explanied to you when you went to closing and signed your papers.

Denise

---------- FOLLOW-UP ----------

QUESTION: Denise, the loan was originally a conventional 30 year mortgage.  After the divorce I refinanced the loan to apparently a home equity loan for the full amount.  I'm sure it was explained but I don't remember all the details of the loan after getting a divorce. What I am finding out now is that I am not able to refinance that 1st lien Home Equity Deed of Trust to a FHA loan.  Is that true?

Answer
Hi Felicia

I will have to look into that for you, I don't see why you can't unless there is a pre-payment penalty on the loan.  Do you know if you have a pre-payment penalty.  Email me at dm@sourcemortgagecorp.com, I want to check into it for you.

Thanks
Denise
About Real Estate Home Mortgages
This topic answers questions related to purchasing a home, owning a home, home ownership, mortgage education, mortgage applications, and mortgage needs whether buying a first home or refinancing a current loan. Issues related to home ownership, home equity, mortgage education, refinacing options, home improvment finacing, first time home loans, home equity loans, vactation home loans, and mortgages for investment homes are dealt with here also. Though not the primary focus of this topic, Home Equity Lines of Credits (HELOCS), reverse mortgages, and calculating home equity may also be asked. If you do not see your home mortgae, home finacing, or home equity question answered in this area then please ask a question here

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Denise Monaco

Expertise

I can answer questions about home mortgage financing, the difference between a mortgage banker and a mortgage broker, fees involved in purchasing a home and refinancing a home or obtaining a home equity loan and the difference between a 1st & 2nd mortgage and the option to have PMI (Private Mortgage Insurance) Jumbo loans, conforming and non-conforming loans.

Experience

I have been a closer, processor and operations manager and currently a account executive for a national mortgage banking company. I have been in the field for 25 years.

Education/Credentials
Real Estate License & 25 years field experience with many national mortgage banking companies.

Awards and Honors
Top sales person, employee of the month, highest sales award

Past/Present Clients
personal home buyers

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