Second Mortgage

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 »

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 »

5 year fixed rate means the fixed rate of interest on the capital loan of the total.

After five years the interest rate will resume to the normal variable rate.

The type of mortgage taken depends on many factors like the intent of the buyers for the house. Are they planning to sell it or stay on it long term. Read the rest of this entry »

Supoose you had a fixed rate mortgage for the last two years.

And now it’s about to expire. What do you do next? Will your mortgage lender offer you a new deal or he will just change to the standard rate? Well, read on… Read the rest of this entry »

So what really is the end results when someone has there home foreclosed?

Well it normally takes about six months for a morgage company to forclose on a home. It can be sooner or later, just depends on how much of careless the creditor is?

Then within three months this will show on there credit report. It will affect the credit score as soon as it is reported to the credit bureaus. Read the rest of this entry »

Do you need to stay away from a second mortgage interest only loan?

If you have been approved for the first mortgage at a fixed rate and a second mortgage interest higher than your first mortgage. And suppose you want the second mortgage interest only loan for an investment property.

Is there a possiblity that your second mortgage payments may go up? If yes, should you go for another loan? Read the rest of this entry »

If you have your house put for foreclosure, you will still owe some money.

Suppose you are told that you will still owe to the bank the difference from the sale. So is there always a possiblity that the house will sell for less then the loan is?

More likely you will be told to do a “Deed In Lieu“, and walk away from it. You must try and call your Lender and ask for this. 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 »

Is is really easy is it to buy a second home and get a second mortgage?

There is a possible way that you can get second mortgage. You have to prove that your first home is rented out and that you have been consistent in paying all your mortgage payments in the past.

So will the mortgage companies look at this as a hoax if you can provide a copy of the lease agreement, or will it be included in the debt to income ratio ? 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 »