We desperately want to refinance our first mortgage and wrap most of our second (citimortgage) into it. Our second is a 30 yr fixed at 7.5%. Trouble is, we are about 45k short (paying off the entire second) in the 80% LTV ratio because our property decresaed by 120k since 2007. We can not qualify for the refi because the payment of our 2nd will not change even if we pay most of it off, resulting in a too high income-debt ratio. We make all our payments every month and our credit is good, but it is a struggle due to a mountain of medical debt.
Is there any chance that citmortgage will agree to convert our loan to a LINE? We don't need them to change the interest or term. Any one else try this? Since citi is 2nd, it would seem to be beneficial to them since the bulk of the loan would be shifted away from them.
I am not sure where to even begin trying to make this happen.