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Caron
Moderator
Joined: 19 Jul 2005
Posts: 1562
Location: florida
266.56 Dollars($)
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Post subject: RE: second loan refinance and lease to purchase |
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Hi Remo,
Welcome to our forums.
I think it will be a good choice to go for second mortgage refinance, provided you can qualify with a lender who is able to offer you a lower rate of interest compared to the existing second loan. Then instead of selling your property, you can allow for a lease-to-purchase option on your second home. There are buyers in the market looking to become homeowners. Therefore, once you are able to find such a person, you can set up a lease-to-purchase option for a certain period, say 2 to 3 years.
The rental payments per month will help you to make payments on the refinance loan. After the lease period is over, you can allow the buyer to purchase the home. With the sale proceeds, you can then pay off either the primary or the refinance loan. It will take some time before you can sell but then this will make things easier for you.
Instead of going for a foreclosure or a short sale which may affect your credit score negatively, finding a buyer who is interested in a lease-to-purchase will be better.
Good luck!!
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maine
Guest
0.10 Dollars($)
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Post subject: debt consolidation second mortgage vs refinance |
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| I am looking to consolidate my debts. Do I refinance my first mortgage which is at 5.7% or go for a debt consolidation second mortgage? |
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helping_user
Joined: 31 Mar 2006
Posts: 815
Location: Hawaii
154.76 Dollars($)
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Post subject: RE: refinance or debt consolidation with second loan |
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Welcome Maine.
First of all, ask yourself how long you plan to stay in the current home and get an estimate of the refinance costs.
I personally feel that if you can stay in the property for quite a number of years, go for refinancing instead of taking out a debt consolidation second mortgage. This is because, the second loan against your current home would be offered at a higher rate and the blended rate (effective interest rate on both mortgages) will possibly be higher than the rate at which you can refinance.
Thanks. |
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sara
Moderator
Joined: 05 Jul 2006
Posts: 1679
Location: New Brunswick, New Jersey
315.05 Dollars($)
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Post subject: RE: |
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Hi Remo,
You may go for a cash-out refinance on the second property so that by taking out extra cash, you can pay off the first mortgage on your primary home. Then, you will have to pay for two loans – the second mortgage which will be then considered as primary loan on your primary residence and the loan against the second home.
Thanks,
Sara |
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caira
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0.10 Dollars($)
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Post subject: Unable to refinance second mortgage or sell property |
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| 2 years ago I took a second mortgage and about 7 months ago I wanted to refinance it. But I found that I owed more than the house was worth. The company had both my mortgages and inflated the value by 25K. It was really impossible to refinance such a huge loan neither could I sell the property. So, I took help from the attorney general of Kansas and the company admitted that they had inflated the value. The company offered that they would re-write the loan on current appraised value of the property and if there was any difference, they would make it up within the origination costs. Guess what the diff is! 30K., what do I do, involve the attorney general again or should I just pay it off and get away from this problem. I am just skeptical that they are again charging more as they have done the first time and why on earth would I lose my hard earned money just because of such a company. |
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adonis
Joined: 22 Oct 2005
Posts: 3852
Location: ALASKA
120.89 Dollars($)
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Post subject: |
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Welcome caira,
It's better to conatct an attorney or if you like to consult the attorney general as otherwise this company seems to taking away your money like anything. That unfair on their part. |
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Varvel
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Post subject: |
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Honestly I never heard of 30k origination cost. But you do not have to pay any of it right? They will be showing it as the origination cost but not charge you any amount, isn't it?
They have said that they will re write the loan to its present value so that at the time of refinance you don't have any problem. It means only the documentation for your loan will be modified.
Varvel |
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blue
Joined: 21 Oct 2005
Posts: 1138
Location: MARYLAND
137.84 Dollars($)
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Post subject: |
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| Quote: | | The company offered that they would re-write the loan on current appraised value of the property and if there was any difference, they would make it up within the origination costs. Guess what the diff is! 30K. |
Caira, they will not be charging you this amount. As they have to modify the loan so that the previous error can be corrected they will show the difference amount as origination cost. Why you will pay for anything now?
If I have not understood your question correctly then let me know.
Thanks
Blue |
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rhonda
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0.10 Dollars($)
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Post subject: |
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| Can I get a second mortgage when my first mortgage is going through Chapter 13 bankruptcy currently. |
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Alex
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Post subject: |
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Why do you want to go for a second loan when there is already an ongoing bankruptcy? I am not discouraging you but then it is just quite impossible. Anyone offering you a loan at this point of time would really have to trust you and be confident that you're a creditworthy borrower.
It's better that you carry on with the chapter 13 plan and make on time payments for about a year before you start looking for another loan. Allow for some time so that you can re-establish your credit already damaged. |
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colin
Moderator
Joined: 30 Jun 2006
Posts: 602
Location: Waltham, Massachusetts
112.65 Dollars($)
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Post subject: |
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Hi Rhonda,
Welcome to Mortgagefit forum.
You were not able to pay all your debts due to financial problems and that is why you filed bankruptcy. Then why now in the middle of the reorganization plan you want to take out a second mortgage?
Colin |
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rhonda
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Post subject: |
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| oh just that i was thinking of it. my house needs some repair and i need to fix them up and also if I could do paint the walls, that would have been great. But this bankruptcy!i was initially skeptical, just wanted to clear the first loan but had a job loss and my husband fell seriously ill, a lot of cash wasted in the nursing home but thank god he's recovering and I am the only one left behind to deal with this bankruptcy stuff. life's not that easy it seems there so much to deal with |
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yau
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0.10 Dollars($)
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Post subject: |
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| if I am taking a second mortgage then is apr on heloc different from what it is for a fixed rate type |
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blue
Joined: 21 Oct 2005
Posts: 1138
Location: MARYLAND
137.84 Dollars($)
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Post subject: |
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Hi Yau,
Welcome to Mortgagefit discussion board.
APR for a fixed rate second mortgage takes into consideration interest rate plus points & other upfront costs charged. But it is not so for HELOCs.
APR for HELOC does not include points & other charges and is based on initial interest rate only.
Do let me know if you have any other questions.
Thanks
Blue |
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sanger
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Post subject: |
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I am looking for some advice. I already got a first mortgage on my primary residence plus a second mortgage for the land which I am planning to build my new home on. The question is whether it will be possible to deduct the interest for this second mortgage?
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