Personal Finance

Mortgage amount in the Notary documents

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  • Jan 9th, 2011 8:13 pm
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Jr. Member
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Dec 27, 2008
144 posts
55 upvotes
montreal

Mortgage amount in the Notary documents

This is my situation:
The bank did an evaluation of the house = 300K
We refinance for 230K plus HELOC 10K total 240K.

I received the paperwork for the Notary and the amount of the mortgage is set to 300K?? Should not be 240K only?

Thanks.
7 replies
Newbie
Aug 25, 2006
38 posts
They do this so that if you want to increase your mortgage, they don't have to refile documents.
Jr. Member
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Dec 27, 2008
144 posts
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montreal
ppineau wrote: They do this so that if you want to increase your mortgage, they don't have to refile documents.

Thanks, but then why the HELOC it's only 10K and not 70K?
Sr. Member
Jul 18, 2009
679 posts
103 upvotes
Ask your notory about this - after all, you are paying for legal advice, use it!
Sr. Member
Jul 20, 2005
691 posts
6 upvotes
annna wrote: Thanks, but then why the HELOC it's only 10K and not 70K?


Because you didn't apply all available credit to the HELOC?
Jr. Member
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Dec 27, 2008
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montreal
netriones wrote: Because you didn't apply all available credit to the HELOC?
The bank told me that the max amount of credit is 300K (the evaluation) - 20% = 240K. That's why I was expecting to see on the Notary's papers 240K not 300...
Deal Fanatic
Jul 1, 2007
8569 posts
1763 upvotes
The bank registers for $300K against the property, while lending you a total of $240K, because a conventional mortgage can only be 80% of property value. If property value goes up to the point where they can lend you $300K against it then they can increase your HELOC without requiring to refile legal documents (costs hundreds of dollars).
Money Smarts Blog wrote: I agree with the previous posters, especially Thalo. {And} Thalo's advice is spot on.
Jr. Member
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Dec 27, 2008
144 posts
55 upvotes
montreal
Thalo wrote: The bank registers for $300K against the property, while lending you a total of $240K, because a conventional mortgage can only be 80% of property value. If property value goes up to the point where they can lend you $300K against it then they can increase your HELOC without requiring to refile legal documents (costs hundreds of dollars).

Thanks, so I'm OK.

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