Question by Mark: i am refinancing and my mortgage company said they will roll my heloc balance into my new mortgage but will?
not open a new heloc for me because rolling the heloc into the mortgage brings me to 77%. once the refinancing is done, is there anything stopping me from going to another bank to open up a home equity line of credit with them to access the other 23%. i have no plans of using it but i like the idea that i have access to it.
Answer by golferwhoworks
yes as conforming loans limits set by Fannie and Freddie have you locked in at 85%. Now with that said there are some “home town ” banks that may lend a HELOC up to 89.9% of the appraised value. That is the case here in TN
I am a mortgage banker in TN & KY
What do you think? Answer below!
You will have a difficult time finding a new lender to provide a HELOC up to 100% of the current value of your home as you referenced in your question. I am not sure what state you are in, but, most areas in the country are considered to be a “declining market” and the maximum combined loan to value might be 90%. (Of which 77% is being utilized on your new first mortgage).