From: trader4@optonline.net (Chet Hayes)
Newsgroups: alt.home.repair misc.consumers.house
Subject: Re: home addition mortgage? Blended?
Date: 7 Jul 2004 13:08:58 -0700

"DaveG"  wrote in message news:...
> "BRN"  wrote in message
> news:ccehar$505$1@murdoch.acc.Virginia.EDU...
> > Please excuse me if this is the incorrect forum to post this question.
> >
> > We would like to have an addition built on our house.  I know about
>  HELOC's
> > and Home equity loans.  I was recently talking to an  acquaintance who
> > mentioned a "blended mortgage".  Here's how he described it.  Talk to your
> > mortgage company.  See if they will do  a construction loan for the
> > addition.  Pay the going rate for the construction loan.  When it comes
>  time
> > to close the construction loan and make it permanent, have them roll it
>  into
> > a 30 year mortgage and then "blend" my previous mortgage (at 5.75%) with
>  the
> > current going rate.  I'm not sure if I can do this with another company
> > other than who holds my current mortgage and get some of the benefit of my
> > current mortgage rate.
> >
> > Anyone know if this can be done?  I will certainly call my current
>  mortgage
> > holder (Chase), but want to make sure I have the terminology right and can
> > explain it correctly.
> >
> > TIA,
> >
> > B
> >
> > You certainly wouldn't be able to do this with any place but the company
> holding your mortgage, could you?  All you can do is ask, and see what your
> current lender says.
>  Depending on what the current interest rate is, they may not have a
> financial incentive to do this, but it never hurts to ask.

And the other problem is that Chase needs to be still holding the
mortgage.  Many of these get packaged and sold, with the mortgage
company only doing the servicing.  But it can;t hurt to try, certainly
Chase should have some alternatives to suggest.