Second Mortgage

When you consolidate your debt with a refinance it is very easy to make mistakes that cost you thousands or tens of thousands of dollars.

A mortgage lender will evaluate your current credit report and often decide which of you consumer debts to pay off. These consumer debts can include: credit cards, student loans, bad debt, car loans, etc. If there is enough equity in your refinance they may be able to pay off all of this debt.

Because mortgage lenders are using your credit report it is usually hard to hide your debts from them. A mortgage lender may insist on paying off some debts – bad debts, co-signed debts, and your current debts. Read the rest of this entry »

The good faith estimate is what you receive after you apply for a mortgage. Here is what to watch out for.

A good faith estimate is something that you are required to get within 3 days of a mortgage application. The good faith estimate is supposed to list an estimate of your mortgage closing costs and your interest rate.

This is only an estimate, and not a written guarantee of fees or interest rates. A mortgage can be a complex undertaking – and usually involves multiple parties. This can include a buyer, seller, buyer agent, seller agent, loan officer, notary, escrow agent, title agent, insurance agent, tax filings, etc. Read the rest of this entry »

Payment shock is when a borrower’s monthly payment increases by a large margin.

This can cause financial difficulty. This is how it happens and how it can be avoided. For starters when a second mortgage lender evaluates your mortgage application they want to make sure you are not going to experience payment shock.

A mortgage lender will evaluate your current (second) mortgage or rental payment and see if your new loan will be much higher than this. Read the rest of this entry »

Rental property financing is usually more expensive and harder to get than regular property financing.

Rates are higher, fees are higher, loan conditions stricter, credit ratings higher, and other loan factors all add up to make it harder to investors to get mortgages on good terms. Recently some mortgage lenders have begun to offer 100% financing to rental property borrowers. Read the rest of this entry »