Second Mortgage

Sub prime lenders are being pretty stupid with their lending.

However, it takes two to tango. A lot of people borrowing money are being pretty stupid as well. They are jumping into loans without investigating the responsibilities and ramifications.

There are people who are getting second mortgages who do not have jobs. Read the rest of this entry »

Is it wise to refinance a fixed mortgage with a 2-year ARM?

Would it be wiser to do the 50-year fixed or a 2-year ARM and then refinance after 2 years for a fixed rate? Paying closing costs twice in two years seems like a lot of money to you.

You need to keep what you have and do NOT, don’t refinance a ARM. Read the rest of this entry »

Most people answering are getting confused.

There are two types of loans out there: Reverse Mortgages and Negative Amoritization Mortgages.

Reverse Mortgage are only for people 62 years or greater and they can be a great way to go. Increases cash flow, eliminates monthly payment. Read the rest of this entry »

Why would a mortgage appraiser reject to give you a second mortgage?

There are a few important questions that need to be answered to understand the role of mortgage appraiser in lending you a second mortgage.

The questions are does a mortgage appraiser have the right to reject a mortgage? Who has the right to reject a mortgage? What might be the most common reasons to reject a mortgage in addition to the condition of house?  Read the rest of this entry »

Do you know how a Mortgage Interest Deduction works?

You pay your payments for the second mortgage but do you know who really gets the “cut” everytime you send that pay cheque? It is called Mortgage Interest deductions.

So who deducts the mortgage interest paid. If you are paying a mortgage in some one else’s name then should it be on his/her tax return since the mortgage is in his/her name? Read the rest of this entry »

If you allow a buyer to pay you partially with a second mortgage what are the taxes like?

Suppose you are selling a rental house and will hold a $26,000 private second mortgage for the buyers. Will the government tax you on this as money you received at the closing?

Even though it is just paper? Or will you pay captial gains on any amount above your basis only when you get the payments from the purchaser? Read the rest of this entry »

This is the buzz all over now but sub prime housing market is still not improving.
Recently there has been much talk about the government stepping in to bail out the people who are losing htere homes do to sub prime loans. Some people have expressed their disagreement with this new step in the recent months.

With the highly unstable subprime market conditions, the government decided to bail people out when they cannot afford it. So do you think it is wrong with a government bail out? Read the rest of this entry »

So should you refinance your first mortgage for debt consolidation or opt for second mortgage benefits?

Even though your first mortgage rate is at low, you would have to consider your blend rate if you opt for a second mortgage.

Either way (HELOC or HELON), your interest rate will be much higher than your current rate, so if your blend rate matches or is better than the current interest rates now, then you might be better off just refinancing your property. Read the rest of this entry »

Can you get a mortgage loan to pay off the interest of the second mortgage and keep the house in the name of the trust?

Consider that a house you live in was owned by an elderly relative and s/he had a second mortgage taken out on the house. Now if that elderly relative passes away and the house went into the name of the trust with some siblings.

Moreover, the loan was a variable interest loan, and is now skyrocketing.  Read the rest of this entry »

An Ohio second mortgage rate lock is a lender’s promise to hold a certain interest rate.

And a certain number of points on this rate commitment for a specified period of time while the loan application is being processed.

When a consumer applies for an Ohio mortgage loan, he or she has the choice to lock in a rate at application, to let the rate float between application and closing, or to choose a float-down program. Read the rest of this entry »