Im a homeowner with, been in house for 7 months. Purchased house with 80/20 program and currently have a $75K HELOC. I have about $50K in equity in the house right now and would like to refinance that $75K HELOC into a $125K HELOC and cash out the entire amount over $75K to pay down credit cards and high interest rate loans.
House is Owner Occupied and my credit score is about 620…no negatives or missed payment, just high usage of credit available weighing down the score. Can anyone help with this or suggest where to go. I am willing to pay a higher rate on the HELOC for now with the intention of getting credit score back over 720 and then refinancing again to get Prime Rates after 3-6 months. Would especially be interested in programs with 3 month teaser rates.
If I am reading this correctly you are wanting to refinance your second mortgage into a Line of Credit to 100% CLTV.
Unfortunately, a 620 credit score is going to knock you out of the game for that high of an LTV on a Line of Credit. You may be able to find a fixed second.
Located in Florida. DTI under 40%. Whatever I do, I am wanting to take $125K and use it to pay off my existing HELOC of $75K and then use the remaining $50K for debt consolidation.