Home Equity line of credit AND refi loan...

[GF5]

What is the name of your state?What is the name of your state? California

Ok...I'm in the process of doing something and I want to make sure I don't get 6 to 10 in the pen for it

What I'm doing sure makes sense to me, but maybe I'm not thinking of something and I'd be most grateful for anyone's advice and counsel.

I've spent the last week calling numerous lenders -- I was looking for a refi/debt consolidation loan and I think I found a good one. The paperwork and process has begun.

I then made one last call to see if I could do even better and this lender suggested a home equity line of credit -- an idea I hadn't considered before but I like it a lot.

Long story short -- I'm moving forward with both, but neither lender knows that I'm dealing with the other. Is this ok? If one finds out about the other will I jeopardize both? I thought not, because only one is an actual loan -- the other is just like applying for a big credit card...right?

My thinking is that I'll consolidate my debts with the refi loan, I'll then have my equity line of credit available to me down the road. I wouldn't touch it now. Am I correct in assuming that there is no monthly charge for the line of credit until I actually use it??

This seems to me that having both the line of credit and the loan would be the best of both worlds for me providing me with ultimate flexiblity, BUT...am I obligated in any way to disclose to either lender that I'm going through with both simultaneously?

I hope that made sense.

Thank you so much for your help/advice.

-GF5

 

[nextwife]

Failing to disclose the first loan at the second loan closing is FRAUD. It totally skews the LTV ratios that they are underwriting the loan by. Additionally, if they are writing this as a first mortgage and it ends up in second position, OUCH!


Read my lips, you would be signing an Owners Affidavit from the title company at the loan closing SWEARING that nothing has changed since the effective date on the title commitment. LYING is "false swearing" Fraud. They have legal recourse against you if you commit fraud. And title insurance companies have DEEP pockets for defending title claims issues. If they write a loan policy insuring that second loan will be in first position, they are on the hook. Thus they will go after YOU to correct the problem YOU caused by misrepresentation.

 

[GF5]

Thank you...

[Many thanks! I sure won't be doing that!!!!!!!!!!!!!!


QUOTE=nextwife]Failing to disclose the first loan at the second loan closing is FRAUD. It totally skews the LTV ratios that they are underwriting the loan by. Additionally, if they are writing this as a first mortgage and it ends up in second position, OUCH!


Read my lips, you would be signing an Owners Affidavit from the title company at the loan closing SWEARING that nothing has changed since the effective date on the title commitment. LYING is "false swearing" Fraud. They have legal recourse against you if you commit fraud. And title insurance companies have DEEP pockets for defending title claims issues. If they write a loan policy insuring that second loan will be in first position, they are on the hook. Thus they will go after YOU to correct the problem YOU caused by misrepresentation.[/QUOTE]

 

[nextwife]

YOu STILL may be able to place Homequity line against your property, junior to the refinance loan. It MUST, however be based upon full disclosure so that they have the correct ratios, and know that the loan will be in second position.