CLTV question...  When we are subordinating a second FIXED mortgage, when calculating CLTV figures does the origianal amount of the mortgage or the current balance of the mortgage have to be held against the borrower in determining CLTV numbers?   I know with a HELOC the full credit line must be used but I am unsure about a second fixed loan.  It would seem the current balance would be used since the borrower cannot take out any extra money on the loan. 

Thanks,

You are correct in your assumption, only the current balance applies to CLTV when dealing with a fixed term 2nd.

Good Luck!

Yes you are right but in regards to refinancing, keep in mind that having a CLTV over 100% will require you to go FHA.

Voyage Home Loans

Mike Kim

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