I just spoke to a new Mortgage Broker who wants to offer me a 1st and 2nd loan option.

Currently we have a $450,000 loan (Home worth $800,000) 30 year fixed at 5.875%.  We wanted to try and re-fi at 30 years 5 %, no cash out, just a refi.  We had the chance for a day, but was not ready to jump.

So a broker told me yesterday that I could get a 4.75% loan at $417,000 and take out a HELOC at around 4%.  He is a whole sale broker, which I am not familiar with.  His cost is only $200.  Can someone explain to me where the Escrow comes into play, ie, will this be more expensive in the end?

Also, how do I compare a 1st/2nd Loan option to a traditional 30 year fixed loan at maybe 5% which is what i am shooting for.  Thanks for your help.  New to this and trying to get some help.

Two things wrong here. The 30 year jumbo if it is one loan is no where near 5%. I would assume the first broker was spliting it up. Secondly, for the second wholesaler ask him for a TIL and look at the APR as there is no loan that is available at that rate for $200.

Good Luck,

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Director of Consumer Mortgage Banking - ***-***-****

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