Second Mortgage

So the tax deduction on your mortgage payments or the tax waiver for profits after you sell a home?

In some states profits from the the sales of your home can be waived of taxes up to a certain amount if you live there long enough. This has nothing to do with tax deduction.

Any home where you pay a mortgage the interest is tax deductible.

Read the rest of this entry »

Suppose you have a partner who currently has a second mortgage in the UK and has done for a good few years.

Now you want to move to move to London and you want to go on the second mortgage with him which you can afford.

And if you are a contractor in a professional role, do you think you can get any mortgage company to give you a joint second mortgage?A solution may be that someone from your family like your father would be a ‘guarentor’ for you and would accept liability to pay the mortgage if you defaulted. Read the rest of this entry »

What does it take for you to qualify for both the loans with purchase money and get a combo loan.

As far as just second mortgage is concerned, just like a home equity loan, you need to have a pretty good credit score, good income/employment history and low DTI.

The person who qualifies for a second mortgage is one that has a credit score acceptable to the lender, enough equity in the property to warrant a second and the ability to repay the loan. 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 »

Why would any bank want to refinance your second mortgage?

If you have a mortgage with Bank A. The rates went way down so you refinanced with another Bank B at a lower rate with a shorter term, i.e., from 30 year went down to 15 year mortgage.

Why would Bank B want to offer me something like that? What is in it for them? Read the rest of this entry »

There will be a time when you may wonder if you need to report the equity “cash out” from mortgage refinance as income?

You do your own taxes every year, but this year you may have this question. Suppose you just refinanced your mortgage recently. And you find out that you have a good amount of equity.

So you decid to “cash out” some of your equity to help pay off some outstanding debts including car loans, student loan, credit card balance. Read the rest of this entry »

If you are in a  process to quit claim a house or still deciding on refinancing the second mortgage, then wait and analyze your situation first.

Suppose your partner wants to split up and s/he will be quit claiming the house to you. So in order to take your partner’s name off the second mortgage, should you re-finance it? 

What are the costs you have to pay for the quit claiming and the refinance? Read the rest of this entry »

Ever thought of refinancing your house and thinking to either apply for prime or subprime mortgage.

It all depends on your credit rating. If so what is considered a prime credit rating? Yes, it does primarily have to do with credit rating. Currently 640 is the extreme low on a prime and has several limits on rates, loan-to-value ratios, and programs. Read the rest of this entry »

After the subprime mortgage market took the dip last week, is it even possible to get an 80/20 loan now?

And is it better to obtain the loan, through an online site or through a mortgage consultant?

Firstly, the subprime market is not affecting the prime market. The 80/20 is still alive, and if you have good scores you can get the better deal with any lenders. You may not want to go for an online lender for your first purchase transaction. 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 »