Discharging a Mortgage + HELOC

[Detox]

Probably a simple question, but..............

If someone has a mortgage and a HELOC attached with a balance, and they want to switch lenders how does that work?

For example, if I have a $100k mortgage and $20k balance on my HELOC at the end of my term, and I know both balances have to be paid off the leave (at least I think anyway). Does the $20k get wrapped up into the mortgage so the mortgage will now be $120k and then you switch lenders?

Just wondering how all of that works.

Many thanks,

Detox

 

[Thomas Beyer]

A new mortgage can be ANY amount (you chose and/or the lender will give you).

The new mortgage will be registered, and ALL prior encumbrances discharged by your lawyer. The rest is yours in cash !

Thus: the new mortgage should be at least as high as the old mortgage + LOC + lawyer fee + beer money !

 

[kboughen]

Both the existing Mortgage and HELOC would be paid and discharged at closing; there are 3 main options you can use to replace them;

1) One mortgage covering all debt
2) A “Split Re-Advancing Product” which would have both a mortgage component and a HELOC component ( a great product for investors)
3) An independent mortgage and an independent HELOC like you currently have (not as flexible as option 2 above)

 

[Nir]

what is the legal fee for re-fi compared to a new purchase? assuming an average lawyer charges $1000 legal fee per purchase transaction, does the `average` lawyer charges the same for re-fi (around $1000), less (~$500) or more (~1,500)? THANKS.

 

[Thomas Beyer]

QUOTE (investmart @ Dec 11 2010, 08:39 PM) what is the legal fee for re-fi compared to a new purchase? assuming an average lawyer charges $1000 legal fee per purchase transaction, does the `average` lawyer charges the same for re-fi (around $1000), less (~$500) or more (~1,500)? THANKS.
slightly less .. between $400 and $900 .. as there is only ONE party .. namely the bank`s lawyer to deal with .. and not the seller`s !