I have two mortagages from two lenders on two houses. Is it possible to consolidate and have one loan from one bank casing the two homes? What sort of subsidy or disadvantage would this entail?
Can I Consolidate Mortgages on 2 Homes into One Loan to My Benefit?
Not probable because each house has it’s own legal description.
Can’t be done. Each mortgage has its own guarantee.
Yes you can. There are loans out there to do that as I have done it in the past with three pieces of property. But when you want to sell one piece it is more hard to relief the liens, but not impossible. I did that as well.
I’m sure its possible at some banks though most would not want to do it. Right now its very possible to get some sort of umbrella loan (usually you do this with lots of properties you want to bundle together). Still, to do this banks would **** it (just simpler for them to keep each property seperate) and what if you choose to sell one house down the road but keep the other. You couldn’t do that without refinancing again.
Also I can’t reckon of any advantage beyond a tiny savings in cost to get the loan (only one closing needed for example) – but this would in fact be a cost for you since you already have mortgages on both properrties.
So, its just a terrible thought. Won’t help any and causes all sorts of hassles. You could, instead simple have the bank write you two seperate loans for both properties at the same time if you wanted (assuming you are plotting to refi them both now). They’d be much more pleased to do this.
I don’t recommend it.
If you do this, you want to have a provision in the mortgage which is common enough for a developer of a neighborhood, but unusual for your situation, where you can get a “partial relief” should you sell one of the two. Without that, you would have to pay off the entire loan to sell one of them. I reckon you’ll have a hard time getting their residential loan officers to know it, and their commercial people won’t talk to you since one or both are residences.
I doubt there’s any real subsidy to be had.
You can’t do this in the US, even if the parcels are right next to each other. It doens’t have anything to do with banks, but the district taxes. The records have be to kept seperately. You can have them at the same bank though, I have numerous with Wells Fargo.