Will I have problems doing cash-out or debt consolidation refinancing?

Let me reprint the whole question before answering.

“Mortgage just sold to another mortgage company. I have a 5/1 ARM set to adjust Nov 09. I have a HELOC with original loan company and I co-signed on a loan for my niece, bad I know. Mortgage at time of adjust should be 206,000, HELOC right now is 34000, and loan should be under 5000 right now. Will I have a problem refinancing? My house and land were recently appraised by the state of Virginia for almost twice as much as I owe. Credit score just came back at 791.”

My answer is probably not. You’ve got a great credit score and a ton of equity even after you roll everything into one loan. The loan will be classified as a “cash-out refinance”, even though you aren’t leaving the closing table with any “cash”. But with your equity position there won’t be a problem, since you’ll be below 80% LTV.

My only concern is waiting too long. Get it done as quickly as possible. You don’t want to lose the good rates we now have and you don’t want to lose the equity position due to dropping real estate values.

So, get-her-done!

Thanks!