I currently have a Home Equity Loan which is a 15 yr. loan fixed at 6.09%. This loan was taken out to pay a relative for their share of the home. There is no mortgage. Can I refinance and apply for a first-time mortgage (combining my Home Equity) so I can add on to the home. My current Home Equity is $55,000. I would like to refinance for at least $100,000.
The difference between a home equity loan and a mortgage is really just a difference in terms, as they both create secured liens on the property. In your case, your equity loan has the same effect as a first mortgage, in that if you default on the loan, the lender could foreclose on and sell the property without repaying other encumbrances (lien-holders), as long as you have no tax liens or other more senior encumbrances on the property. You can probably mortgage the home to repay the equity loan and cash out the remaining equity in the home, however, I doubt that this loan will be considered a "first-time mortgage."
Bills.com makes it easy to compare mortgage offers and different loan types. Visit the Mortgage Refinance Quote page and find a loan that meets your needs, or see the table below:
The only reason I can think that you would be concerned about the loan being considered a first time mortgage is that some lenders offer special loan programs to first time home buyers. However, since you already own the home in question, I doubt that any lender would consider you a first time home buyer. Therefore, you should simply look for the best refinance mortgage available based on your credit rating and the amount of cash you need to pull out of the home. I encourage you to visit the Bills.com Mortgage Resources page to read more about mortgage loans and the different types of loans available to consumers. If you enter your contact information in the Bills.com Savings Center at the top of the page, we can have several pre-screened mortgage lenders contact you to discuss the loan options available to you.
Since I do not know the value of your home, I cannot say how much you equity you will be able to pull out of your home. Your interest rate and loan terms will also be based on your credit rating, income, amount of the loan, and other factors. By speaking with various lenders, you can determine the maximum loan amount available to you, and how much you can expect to pay for various loans. I encourage you to shop around with several lenders to make sure you obtain the best loan terms possible. Again, the Bills.com Savings Center is a great place to start as we can have several lenders contact you to discuss the terms they can offer.
I wish you the best of luck in finding a loan that fits your needs. I hope that the information I have provided helps you Find. Learn. Save.