We have a lender asking if they can do a $300,000 first mortgage refinance and a $90,000 home equity line - the first mortgage, plus $60,000 of the equity line would be used to satisfy the $360,000 present mortgage.
Can we use proceeds from an equity line as part of the original loan payoff?
The same concept (I assume) would apply if the lender did an 80% LTV purchase-money first mortgage, and a 90% LTV home equity line to cover the balance of the downpayment & avoid PMI on the first - I've been asked this before, too, and fell back on our policy of not making these loans. However, I'm curious as to whether it's even possible.
Thanks in advance -
_________________________
Opinions are Bartman's, not those of my employer. "A noble spirit embiggens the smallest man."