HELOC Lien Position
Considering pulling out some cash out of my property with a HELOC for future investments, Presently have a first and second mortgage on the property. My question is will lenders be willing to take a third lien position or will I have to refinance rhe second with cash coming out of the re-fi. And how much is available with an 200k first a 50k second with the appraised value at 300k. With a standard 80% cltv that leaves me at 240kand I've already exceeded that amount. ?????
Finding someone to do a third is alot harder to do, can it be done yes but it will be hard. If your at 80% now it might be another problem you will have to talk to someone who knows what your trying to do.
I don't believe there is a large national market for 3rd position liens. I think you best bet would be a larger local bank (not a franchise) that keeps their loans in house.
A better option is likely to cash out refinance the 2nd mortgage.
Why don't you refi your current 2nd into a HELOC? So that way you would roll the 50K into the new HELOC and have an additional 50K to use. 200K first lien, 100K HELOC 2nd lien.
Great advice, and yet so simple.
thankyou