second mortgage

junebug4881 · Joined: 11 Jun 2007 Posts: 1 1.41 Dollars($)

can you take out a second mortgage is you
dont have a lot of equity for instants i would like to borrow 63,000 to pay off all our bills in 10 years
and have one payment we make 80,000 together a year. we just refinanced dec last year and didnot have enough to pay off everthing what do you sugest our credit is good not exect

Guest 0.10 Dollars($)

Hi Junebug,

How much you can borrow depends on the amount of equity you have in the house.

miller_st · Joined: 17 Jan 2007 Posts: 917 168.82 Dollars($)

Before taking a second mortgage calculate whether it will be good idea to take out a secured loan against your home for paying off unsecured debts.

Also compare the rate which you will be getting on the second with the rates on the debts you want to payoff with the loan amount to check how much gain it would be.

Miller

Caron

Hi Junebug,

Your income seems to be substantial but you need to check out whether you will be offered a second loan for the amount of equity that you have. Also, you have refinanced just a few months ago. In that case, if you go for a second loan again, you'll be paying a large amount as closing costs within a few months. So, think about your finances and liabilities and check your affordability before you go for the loan.

By the way, did you check out your credit score? If not, then get a free copy from any of the credit reporting agencies. It will help you to improve your credit accordingly.

Good luck!

ckalvesmaki · Posted: Tue Jun 12, 2007 6:19 am Post subject:

You can take a second mortgage out for up to 125% of the appraised value of the house.....there are some caveats to that. Loan amount does come into consideration based on your actual credit scores. The state you are in will affect your ability as well. In TX you can't tap into Equity over 80% of the value of the house.

ezmortgageloanz · Posted: Wed Jun 13, 2007 1:20 am Post subject:

Second mortgage decisions are made in most part by factoring the, 1) borrower's FICO, 2) available equity in the property, 3) Final DTI.

It might be beneficial to you to evaluate doing a cash out refi (to buy out your original mortgage and provide the money you are seeking) and establishing a new first mortgage---there are programs that will lend up to 95% of the market value of your home assuming that you meet certain credit/debt/income/employment criteria.

Another option that is less likely to deliver the lowest cost of borrowing, but is an option none the less, is seeking out a unsecured LOC (line of credit).

Regards,

Scott Miller

Guest 0.10 Dollars($)

can you tell something more on "unsecured LOC (line of credit)" scott, i dont know how it works

helping_user · Posted: Thu Jun 14, 2007 10:54 pm Post subject: RE: Unsecured line of credit

Welcome katherene.

The unsecured line of credit (LOC) is a financing option by which you can convert credit into cash payments whenever required. Using the unsecured LOC, you can pay creditors through the Account clearing house or a bank check with a phone call or online access.

Creditors offering unsecured LOC try to offer better terms and conditions on credit – such as higher creditline, low rates and longer repayment periods.

Thanks.

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