Is this a stupid mortgage question?

[disneybound31]

My mortgage is with one of the BIG banks...we do all our other banking with a local credit union. Can I get a home equity loan with my credit union even though the mortgage is with Regions Bank? Or do I have to refinance with the credit union?

I actually would LIKE to refinance with my credit union as their rates are super and they are far superior to work with on an everday basis.

I currently have 4.625% on a 15 year mort. (13 yrs left) and the credit union is offering 3.125% for a 15 year...it would be a cash-out refi if we did it because we are adding onto the house next year. Or we could just do a home equity loan, but only want to give our business to the credit union, hence my question...

TIA

 

[mrodgers]

I have a mortgage with Bank of America and am picking up checks tonight from the local Credit Union from a home equity loan to consolidate CC debt. No problems at all.

I could have refinanced everything into 1 mortgage, but the payment would have ended up a lot more than the separate mortgage and equity loan. I can also do a separate refinance of the home loan through the credit union as well, but I have 20 years left and they only do 15 and 30 years. Payment would be too much on 15 years as opposed to leaving the current alone at 20 years left. Another 30 year was out of the question for us.

So, yes, you can. As I said, I'm picking up the checks tonight to send out to the CC companies.

 

[disneybound31]

I have a mortgage with Bank of America and am picking up checks tonight from the local Credit Union from a home equity loan to consolidate CC debt. No problems at all.

I could have refinanced everything into 1 mortgage, but the payment would have ended up a lot more than the separate mortgage and equity loan. I can also do a separate refinance of the home loan through the credit union as well, but I have 20 years left and they only do 15 and 30 years. Payment would be too much on 15 years as opposed to leaving the current alone at 20 years left. Another 30 year was out of the question for us.

So, yes, you can. As I said, I'm picking up the checks tonight to send out to the CC companies.

Thank you so much! I had googled alot and THOUGHT it was possible, but I knew I could get a definite answer from the dis!! That helps me alot with my planning- thanks again

 

[Tinkerbellie16]

The only stupid questions are the ones NOT asked - so good for you for asking!

I've done both. I had a mortgage through a big bank and a home equity loan through our credit union. Rates plunged so I went with a refinance with the credit union and we wrapped up the home equity loan into it.

Of course, do all the numbers and compare every single penny you will pay (closing costs, interest, etc) and compare it to what you would have paid if you stayed separate. And of course, check your break even point and make sure you will live in your house until that break even point. In my case, we saved tens of thousands of dollars over the life of the loan.

Good luck!

 

[seashoreCM]

I I can also do a separate refinance of the home loan through the credit union as well, but I have 20 years left and they only do 15 and 30 years. Payment would be too much on 15 years as opposed to leaving the current alone at 20 years left. Another 30 year was out of the question for us.s.

If the interest rate was low enough then you could have refinanced for 30 years and every now and then paid extra towards the principal which would then finish off the loan in 20 years. I don't have the numbers handy but I am guessing that making a "13'th" payment in the middle of every December would accomplish that.

 

[Cheshire Figment]

A second mortgage (or third, or ninth) can each be done with separate lenders. Each will put a separate lien on the property. It is a matter of timing. The first lien filed is the first mortgage, etc. Basically this is the order of who gets paid in the event of default and sale of the property.

 

[scrapquitler]

My mortgage is with one of the BIG banks...we do all our other banking with a local credit union. Can I get a home equity loan with my credit union even though the mortgage is with Regions Bank? Or do I have to refinance with the credit union?

I actually would LIKE to refinance with my credit union as their rates are super and they are far superior to work with on an everday basis.

I currently have 4.625% on a 15 year mort. (13 yrs left) and the credit union is offering 3.125% for a 15 year...it would be a cash-out refi if we did it because we are adding onto the house next year. Or we could just do a home equity loan, but only want to give our business to the credit union, hence my question...

TIA

As far as I know, you do NOT have to have the HELOC with the same bank as your primary mortgage.

 

[SPBendersky]

You can take a second mortgage or a home equity loan with the credit union. I have a second mortgage/ Home equity loan with a credit union and I do not belong to it nor have any accounts opened at this time. You will have to check the fine print in your first mortgage, but it shouldn't be a problem with them. The Credit union will be checking the amount of equity in the dwelling along with all your other financial information. Good Luck