Is refinancing a mortgage and Heloc into just a mortgage cashout?

[Stuart M.]

If you have a first mortgage, and a heloc, on an investment property, and you want to roll them up into one mortgage on that investment property, would that be considered a cash-out refinance or is this just a regular refinance?  You're just rolling both liens/loans into one.

Does anyone know of banks that offer 80% refinance on an investment property that would roll both of these up into one?  Or is 75% the max? 70%?  Penfed doesn't seem to offer this.

If you want to know why one would consider this, imagine you have paid down a ton on the first lien, but the fixed payments don't change, and you want lower total monthly payments so you can use the extra money somewhere else.

[Kevin Romines]

If the HELOC wasn't taken out at the time and used for the acquisition of the property, then yes, its considered a cash out refinance. All the conventional loans will be a max. of 75% on a single family property. You can go portfolio up to 85% but the rates are about 2% higher than the rates you would get on a Fannie Mae or Freddie Mac type loan.