Second Mortgage

Can this kind of total refinancing benefit you?
Refinancing a first and second mortgage requires some extra considerations. Depending on your equity, you may find that combining the two mortgages results in a higher interest rate. You may also find that you have to carry PMI with the refinanced mortgage.

Refinancing two mortgages allows you to consolidate your loans into one payment, often lowering your monthly bill. You may also find lower rates under the right circumstances. Read the rest of this entry »

This may not sound common but there are homeowners who are going this way too! 

 According to the National Association of Realtors (NAR), almost 40 percent – or 3.34 million – of the homes and condominiums bought last year nationwide were by people who were buying second homes.

“What we see now is a crossover between largely vacation- and investment-home owners, with people recognizing the value of those investments and pouring more assets into real estate,” stated NAR President Thomas M. Stevens. With so many consumers buying investment property, perhaps you’re wondering about purchasing a second home or buying a vacation home yourself. Now how do you finance it? Read the rest of this entry »

Combining 1st & 2nd Mortgages Together

It seems to be a common dilemma for homeowners in many states:

What the best solution for refinancing my first & second mortgages?

Suppose if you have an 6% 1st mortgage with a balance of $255,000, and a second mortgage at 14% with a balance of $52,500. You do a 125% second mortgage to pay off some credit cards. If you add the loans together, you may exceed your homes equity. Read the rest of this entry »

This is an excellent loan for those that are lacking the down payment required for other types of mortgages.

The 80 20 mortgage is simply two loans for 100% of the purchase price. It is a first mortgage at 80% of the purchase price with a 20% second mortgage.

If you are a conforming borrower, doing your loan in this manner will save you from having to pay mortgage insurance. Mortgage insurance is almost always required when you have less than 20% down. But with the 80 20 loan you avoid this necessary evil. Read the rest of this entry »