Refinance Advice Needed for Client - combo 1st & equity LOC

Services for Real Estate Pros with Christine Wade CA License# 01442002

Hello, I have a client who is in fast need of refinancing advice.


He loves this home and has no desire to sell soon, he has built his paradise back yard with pool, outdoor kitchen, etc...  The reason why he needs to refinance ASAP, is because his 10 year equity line at prime / adjustable through Citibank, has recently hit the point where he is no longer paying interest only every month, but is now having to pay principle + interest and his payment has therefore tripled, which he cannot afford.  He is still paying the interest only amount and is about to have this hit his credit next month and does not want to ruin his credit.


He has applied for a combined refinance with his bank and his credit union, both denied him.  He is currently running it through a mortgage broker friend of his (UPDATE:  this friend is not with a mortgage broker company, according to their website, they are a direct lender - "an independent and well-capitalized direct lender and mortgage banker")  and will know soon if that will work.  What other options are available to him?  I know there are so many out there in this situation about now, so I thought this might make a good "public interest" - what should people do post - where all of you finance experts can show your knowledge.  Please feel free to comment below and ask questions for needed information to provide advice.  FYI - this particular client is in San Diego County, CA. 


Here are the important details that I thought to ask him:

  1. Amount owed on first mortgage / which company:  $303,000 - Bayview Mortgage. 
  2. Current payment on first: $2241/ month
  3. Interest rate on first: 5.8%
  4. Amount owed on 10 year equity line: $180,000 - Citibank 
  5. Payment on 2nd: $525.00 / was interest only
  6. Current payment after 10 year interest only rate expired: $1425.00 / month 
  7. Interest rate on equity line: prime - adjustable 
  8. Amount of rent from Tenant: $1300.00 / month  (apartment over garage)
  9. Expiration date of lease from Tenant: month to month now 
  10. Proven rental income for how many years now on unit: 1
  11. Approximate value of home: client thinks $625,000 based on comps, data on zestimate doesn't show converted square footage as being part of the home even though it was grandfathered in by the city - current Zillow Zestimate of home is:  $483,063
  12. Your current base gross income:$7000 per month but that can be higher with overtime etc..
  13. Any other income:  just the rental income from the apartment
  14. Your middle FICO credit score: 690
  15. Major items showing on your credit report as owing are:  Visa $9000.00 everything else is paid off,
  16. Important details I might have forgotten to ask you:  I have a mortgage through Marriott for 14,000.00 for my time share ($240/ month) 

The main stats of the house as Zillow lists it now is: (does not show original garage converted to family room or new building of 2 car garage with apartment overhead)

This 2048 square foot single family home has 4 bedrooms and 2.0 bathrooms. Lot: 0.59 acres.  Built in 1974.
My client really needs to get his payment as low as possible and needs this done quickly.  How would you advise him to proceed?  Go...share your wisdom ;-)  And THANK YOU in advance :-)
Posted by


BIO:  Christine Wade has successfully owned and operated a Real Estate Virtual Assistant business, specializing in Real Estate Support Services, since March of 2000. I have several accreditations and have received many client testimonials over the years.  I have over 26 years of administrative experience, I am a licensed agent in California (#01442002) and I specialize in on-going, value-based services provided to real estate agents and brokers...long term relationships with my clients are my greatest success stories. I was a contributing author over at, you can read my articles that I have written, all directed towards real estate professionals, by clicking here

visit tracker on tumblr


This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Mortgage / Finance
California San Diego County
San Diego Real Estate Q and A
Out Of The Box!
Addicted to Active Rain

Spam prevention
Show All Comments
Gary Woltal
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth

Many combinations possible but yes a mortgage broker is the one to work with here.

May 18, 2016 03:08 AM #1
Christine Wade - Real Estate Virtual Assistant
Christine Wade - Townsend, MT
Proud to Serve Your Real Estate Support Needs

Thanks, Gary.  I was incorrect in my statement that he is currently working with a mortgage broker, apparently they are a direct lender.  I have updated the post to reflect that.  I think that a mortgage broker is what he needs to be working with as well, so that they can come to him with multiple / his best, most cost-effective options.  Is there anything in particular he should look for when choosing a good, well-connected mortgage broker for this type of situation?  Thanks again!

May 18, 2016 04:08 AM #2
Bruce Walter
Keller Williams Realty Lafayette/West Lafayette, Indiana - West Lafayette, IN

Christine, in our area we have a wonderful mortgage broker who has hundreds of investors she can match up with client needs with special situations like your client needs.  That is the first type of lender I would send a client to with special situations, as well as ordinary home loans!  Good luck!!!

May 18, 2016 07:16 AM #3
Christine Wade - Real Estate Virtual Assistant
Christine Wade - Townsend, MT
Proud to Serve Your Real Estate Support Needs

Thank you, Bruce :-)


I am wondering if anyone out there has had any luck renegotiating with Citibank for an extension of the draw period on the HELOC?  Even if he could get something like a 6 month extension that would help, years would be better of course, but an extension to give him the time to get his credit score into the 700s and pay off any debt would really help him be in a better situation.

May 18, 2016 12:18 PM #4
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?


Christine Wade - Real Estate Virtual Assistant

Proud to Serve Your Real Estate Support Needs
Ask me a question

Additional Information