Second Mortgages
Second Mortgages can be used to avoid having to pay PMI; by keeping your 1st Mortgage’s LTV under 80% and financing the balance on a 2nd Mortgage. It can also be used to consolidate debt with out having to refinance the 1st Mortgage or as a Line of Credit for potential future emergency’s (new roof, cesspool, Boiler or anything).
There are two main types of 2nd mortgages:
§ Home Equity Loans
§ Home Equity Lines of Credit
Home Equity Loan - To qualify for a home equity loan, you have to have good credit and you have to document your income. A home equity loan is a lump-sum loan that amortizes the same way your 1st Mortgage does; principal and interest over a 10, 15, 20 or 30 year term. The difference is that the home equity loan is in the second position behind the 1st Mortgage. Although the closing costs are lower on a second mortgage than closing costs on a first mortgage; home equity loans have fixed rates that are higher then first rate mortgages.
Home Equity Line of Credit – You need the same criteria’s to qualify for the Equity Line of Credit as you do for the Equity Loan described above. Some of the differences between the two include the fact that the Equity Line has an Adjustable Interest Rate that can increase or decrease on a month to month basis. The starting rate on the Equity Line is usually a lot lower then theMortgage Loan Products
· Fixed Rate Mortgages Loan
· Adjustable Rate Mortgage
· Debt Consolidation
· Second Mortgage
· Home Improvement Loan
· No Money Down Home Buying
· Interest Only / Fully Amortized
· LIBOR and MTA Arms
· New 12 Mo. Avg MTA
· Sellers Concession
· Term Reduction Loan
· Cash Out Refinance
· Bi-Weekly Plan
· No Income or Stated Income
· Bank Statements As Full Doc
· No Asset Verification Loan
· Rapid Credit Repair
And much, much more
With over 1400 different programs to choose from, we’re
sure to find the perfect loan for you; guaranteed. rate of the Equity Loan, but depending on Federal Interest Rates in the future after the closing that start rate can catch up or surpass that of the Equity Loan- who knows! The Equity Line is also an interest-only payment, as apposed to the fully amortized Equity Loan. The reason why the Equity Line of Credit is so popular though, is because it acts like a high limit credit card. If you take out a $50,000 Home Equity Line today and decide not to use it for 5yrs, you wouldn’t have had to make any payments on the $50,000 until you drew out some of the money. If you drew out $5,000 you would be billed based on the Interest Rate at the time and the loan amount of $5,000, the remaining $45,000 would be available credit. This is a good loan to have for a future possible emergency.
* Which ever loan you choose, always use the formula in the “should you refinance” section to help with your decision.
** Also read sections: Debt Consolidation, Refinance My Mortgage, Mortgage Rates and Credit Scores.