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Second mortgage: A way to borrow against your home equity

Sometimes you may need a lot of cash, but can't find any other way to get it, except by pulling equity out of your home. Here's where a second mortgage can help you. This article gives you an overview of second mortgages and covers the following aspects:

Do it yourself!
Check out whether second mortgage
is the right option for you


What is second mortgage?

It is a loan taken out against your home after you have already taken out a first or primary loan. The equity that you have built up in your original home is utilized as the collateral to take out the second loan.

A second mortgage is considered as the subsidiary to the first one. In case you default on both the loans, it is always the first mortgage which is repaid first. The second mortgage is taken care of only after the first mortgage is being fully repaid.


When should you choose a second mortgage?

There are situations when you may want cash out some of your home equity by taking out a second mortgage. They are
  • You have accumulated a large amount of debt and need to pay them off.
  • You wish to invest elsewhere or you may be begin a new business.
  • You want to avoid paying private mortgage insurance. This is possible only when you get a second mortgage that makes up 20% of the home purchase price.
  • You may want to spend on expensive items such as a new car, new property, or new appliances.
  • You want to remodel or add to your home.


How much can you borrow?

A second home loan allows you to borrow based on your home's equity. The amount of the loan that you have already repaid is the amount of equity that you have built up in your home. Your equity symbolises your home ownership.

Usually, majority of the lenders offer you a second mortgage loan up to the point where the loan to value (LTV) ratio of the first and the second loan together amounts to 85% of the appraised value of the home. However, there are lenders in almost all states, except Texas and West Virginia, that allow you to take out second mortgages equal to 125% of the appraised value.


What are the possible rates, terms and options?

Interest on a second loan will be higher than with a first loan. The reason behind this is that in case you default, the original mortgage is repaid first and the second one is repaid thereafter. So, it is quite evident that more risks are attached to a second mortgage than in case of the first mortgage.

Second mortgages are available as adjustable rate home equity lines of credit and fixed rate home equity loan. The lender will quote you a rate depending upon your credit score, total loan to value ratio, and current market trends. The loan term will vary from 15 to 30 years depending on the option you choose. But in general, a second loan is offered for a shorter time period than a first loan.


How do you get a second mortgage loan?

In second mortgage, you use the same process you used to find your first mortgage. You need to shop around for a suitable loan by approaching different lenders. You can simply fill out a free short no-obligation free form to get quotes from community ranked lenders on this site. Then you should compare the quotes, find the offer that will work best for you. Finally, you need to fill out the necessary paperwork to apply for the loan. The lender will conduct an appraisal of your home in order to determine its current value, complete all the steps necessary to process the loan, and arrange for the loan closing. At closing, you will sign the note and security instrument required by your lender. You will be liable to pay the closing costs for the second mortgage also, similar to what you paid while obtaining the first mortgage loan.


What happens to the second loan if you refinance the first?

When you refinance the first loan after getting the second mortgage loan, the second loan still remains in its subordinate position. Your refinance lender ensures that the refinance loan becomes the primary loan and the second loan remains subordinate to the refinance loan.

A second home loan gives you the chance to tap handsome amount of money in exchange of home equity. Moreover, you may be able to deduct some of the interest from your income taxes. However, there are a lot of additional costs involved with taking out a second loan.

In addition, if you default on the second loan, you may lose your home in a foreclosure. So, before making the decision to take out a second mortgage loan, you should make proper financial planning. You need to find out the total monthly obligations of taking out the two loans and check out whether it is within your affordable range or not.


What are the limitations of a second mortgage?

Despite its various uses, a second mortgage is fraught with some limitations. These limitations are -
  • High chance of losing the home - By taking out this loan, you add to the risks of losing your home. If you fail to make payments on your second loan, you may end up losing your home. You need to ensure that the purpose for which you are taking out the loan is worth the risks that you are taking.
  • Rate is higher than the rate on first loan - The rates on second mortgage are relatively higher than the rates on the first mortgage loans. This is so because in the event of default, it is the original mortgage which is repaid first. The repayment of the second mortgage is taken care of later.
  • Fees may be hefty - Sometimes, a second mortgage may involve hefty fees. This adds to the costs of taking out the second loan.
Related Articles
Related Forum Discussions
Caron's picture
Caron | Joined: July 19, 2005 08:37 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

A 2nd mortgage requires similar costs that are payable in a first mortgage. The closing costs range from 3% to 6% of the loan amount. Lenders charge an administrative fee of about $250 along with an appraisal fee that lies between $300 and $400 for a standard owner occupied single family residence. They also demand fee for obtaining and checking the credit reports. This credit fee ranges from $25 to $65. There are also the title and escrow fees that may be slightly less than that of the first mortgage.

Most lenders allow for a "Flag" title insurance policy in a second mortgage having loan amount of $200,000. This policy requires the payment of a flat fee of about $125. Often a "Sub-escrow" or "Mini-escrow" fee is also charged. This fee amounts to something between $225 to $250. Apart from all these costs, the lender also charges standard notary fee, recording fee and pay off fees lying between $60 and $150.

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:52 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am currently seeking for a second mortgage on my home. I will use the money for home improvements and to clear some debts. I have very little equity built up as I have recently bought the house. Can I write off the interest on the second mortgage? The loan is a 125% loan.

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:52 | Post subject:

Jessica's picture
Jessica | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Dauglas,

Welcome to MortgageFit Forums.

Generally, you can claim a tax deduction on the interest that you are paying on your home mortgage. But you will have to acquire the property first and then borrow at least $100,000. You should also claim the interest on this loan as a qualified residence interest.

However for the interest to remain deductible there are certain limitations, for example, the secured loan balance cannot exceed the fair market value of the home. But a 125% loan is meant to exceed the fair market value of the home. And, lenders generally make such offers if you are willing to pay off the loan at higher interest rate and also if you have a good credit history.

You will be allowed for tax deduction on the interest on your 2nd mortgage but only if the sum of the first and second mortgages do not exceed your home value. Your home value is likely to increase if you go for home improvement. And, this will help to increase your liability to pay off the loan.

Regards,
Jessica

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am single mother looking for a bigger home in a better neighbor hood. I have be in my current home for six years. I do own it. I however have bad credit and I belive the chances of my purchasing another home is next to impossible if someone has any information I would like their input Thanks

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jerry's picture
jerry | Joined: October 17, 2005 03:24 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

Welcome to the forums.

Nowadays lenders are willing to give loan to the borrowers who have low credit score. But the interest rate that you will be charged on the loan is surely going to very high.

MortgageFit has a large network of mortgage lenders. What you all need to do is sign up with them, so that their loan department can find the best lender suiting your needs.

But if you take my advice I would ideally want you to wait for some more time and work on improving you credit score by working out on some of the basics, like planning your monthly budget and meeting your bills on proper time.

Please feel free to ask if you have any more doubts. :D

Thanks,
Jerry

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Caron's picture
Caron | Joined: July 19, 2005 08:37 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Tanesha,

I agree with Jerry; it is always better to improve your credit profile before you think of taking a loan. Please go through our section on credit repair for some tips on how you can improve your credit score.

Thanks,

Caron.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I owe 105,000 on our house bought two yrs. ago. I took a home equity line of credit to get the other 10% for down payment. The house was initially assessed for 157,000. We have done alot of improvements. Can I take a second loan to get rid of the high interest debt I have.

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blue's picture
blue | Joined: October 21, 2005 09:17 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Meredith,

You can take a 2nd mortgage provided you have built enough equity on the home.

BTW, what rates do you have on the debts?

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Meredith,

I understand your concern. There are no limits in the number of mortgages that you can take provided you qualify and you must also check that your purpose is served.

You can opt for refinancing of the 2nd mortgage also. If you get lower rate in refinancing your HELOC to a fixed rate second mortgage then you can go for it. But check whether the difference will benefit you when you need to pay the pre-payment penalty, if there is any.

James

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

we bought a house a year ago and we still owe about $280,000 and the value of the house is about $370,000 we want to consolidate all of our debt which will be around 80,000 can we still take a second mortgage of 80,000 and do you know how much monthly payment will i pay for the second mortgage

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi, Jojo

Thats all depend on the amount of the loan and terms agreed. Basically it will be calculated on the interest as well.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I bought my home about six month ago. I do not really have any equity built up yet. can I do a 2nd mortgage?

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Samantha's picture
Samantha | Joined: September 16, 2005 11:59 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Woody,

Welcome to MortgageFit Forums.

You can get a home equity loan without any equity on your home with some lenders. For that you will have to pay significantly higher interest rates and closing costs. PMI will be required.

Home equity loans are cheap if you have already enough equity on your house. If you try to borrow before you have built some equity you will get it with a little shopping around but you need to pay higher costs and will get fewer perks.

God bless you.

For MortgageFit,
Samantha

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have a mortgage and a second loan on the same property which is my primary residence. I have used the second mortgage to purchase a second home which I thought will be able to sell within a few months of time. But time is over and it has been over 6 months since I tried to sell the home. So, what I can think of is, either I go for the second mortgage refinance or rent the second home or short sale will be ok? Either of these would be better than foreclosure, isn't it? Pls help me decide which will be the right way.

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Caron's picture
Caron | Joined: July 19, 2005 08:37 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

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!!

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:52 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am looking to consolidate my debts. Do I [url=http://www.mortgagefit.com/refinance.html]refinance[/url] my first mortgage which is at 5.7% or go for a debt consolidation second mortgage?

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helping_user's picture
helping_user | Joined: March 31, 2006 03:39 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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's picture
sara | Joined: July 5, 2006 03:16 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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's picture
blue | Joined: October 21, 2005 09:17 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

[quote:1ac33b3a72]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.[/quote:1ac33b3a72]

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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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Can I get a second mortgage when my first mortgage is going through [url=http://www.mortgagefit.com/bankruptcy/chapter13.html]Chapter 13 bankruptcy[/url] currently.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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's picture
colin | Joined: June 30, 2006 02:50 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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's picture
blue | Joined: October 21, 2005 09:17 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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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miller_st's picture
miller_st | Joined: January 17, 2007 04:47 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Sanger,

Has construction of the new home started?

If construction of your home has not started which would result in you being able to occupy it within 24 months, this land will be considered as an investment.

And the interest paid for the second mortgage will not qualify as deductible mortgage interest.

Miller

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I had purchased property under the gnnd program, now the 3 yr occupancy period is coming close to be over, will the hud's second mortgage be released now?

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carnahandavid's picture
carnahandavid | Joined: December 21, 2006 04:07 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Molly,

As the 3 year occupancy period is going to end, HUD's second mortgage will be released if you:

  • As a participant to the program have completed & returned all the required annual certifications,
  • Are currently not under investigation by the Office of Inspector General (IOG) and
  • Are in compliance with all Good Neighbor Next Door (GNND) regulations.

If all these conditions are met then a mortgage satisfaction will be filed with your county recorder's office and a copy will be mailed to you. This release will be mailed to the county recorder's office with 30 days of the end of the occupancy period.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

if you want to take out a second mortgage on your home, could you use both husband and wives income even if the house is only in in the husbands name or do you have to put the house in both names to use both incomes.

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colin's picture
colin | Joined: June 30, 2006 02:50 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Guest,

Welcome to Mortgagefit forum.

For taking a second mortgage the house should be in both names if they need to take the loan jointly.

The house works as a collateral for the mortgage so lender would require all named on the mortgage to have ownership rights over the house on which the loan is been taken.

Colin

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

how/where can I check to know if a mortgage company is licensed with dept of banking to give second mortgages in connecticut

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miller_st's picture
miller_st | Joined: January 17, 2007 04:47 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Jeanty Connecticut Department of Banking posts licenses of mortgage companies providing second mortgages on their website. You can view the list from here - http://www.ct.gov/dob/cwp/view.asp?a=2233&q=297866&dobNAV_GID=1663

You can also check the status of any company's license if it is not listed on that above page by calling (860) 240-8200.

Miller

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have sold off my property a few yrs ago with the help of realtor. In order to make the deal work, I agreed to take up the liability of paying for a second mortgage for $15,000. The buyer has fallen behind on the first loan as a result of which the lender foreclosed. And then there were late fees and interest charges which is why he had no money to recover what he owes me. What i wish to know is the buyer is still responsible to pay me and if he not doing so, can I file a case in small claims court? The property is in California.

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Veronica,

Welcome to the forum.

If the buyer has signed on a written agreement stating that he will be paying for the second note, then he will be still liable to pay you what he owes. In that case, you can file a case in the small claims court.

Thanks

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

It's ok if you want to file a case against the buyer, but then just keep in mind that there’s always a limit up to which you can sue a person in the small claims court. In California, it's around $5000. In cases beyond the limit, you will have to go to the usual court.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My house is paid for and thinking of buying a second home that can only be bought with cash because it is not up to HUD standards. Is this smart to take 2nd mortgage on this my kid will be residing permenantly in second home?

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miller_st's picture
miller_st | Joined: January 17, 2007 04:47 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

[quote:58bf46bcb1]My house is paid for and thinking of buying a second home that can only be bought with cash because it is not up to HUD standards. Is this smart to take 2nd mortgage on this my kid will be residing permenantly in second home?[/quote:58bf46bcb1]

Jennifer,

As the house is paid off you can take a mortgage on this house and this will be considered as a new loan and not a second mortgage.

Miller

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

are 2nd mortgages available for property which is rental or investment?

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miller_st's picture
miller_st | Joined: January 17, 2007 04:47 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Yes you can get a 2nd mortgage for non owner occupied property such as rental or investment property. But for such loans the rates charged are going to be higher than what are charged for oo properties. Some lenders may also require the borrower to have 20 percent equity remaining after the 2nd is taken.

Miller

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I want to compare if a cash out [url=http://www.mortgagefit.com/refinance.html]refinance[/url] or taking a second mortgage will be good for me, is there any calculator which I can use to make out the advantage I would get by selecting one of the two options?thanks for the help

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Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Nancy,

You can use the calculator listed on this page to determine which option will be better for you, a second mortgage or a cash out refinance of your existing mortgage - http://www.mortgagefit.com/calculators/cashoutrefinance-secondloan.html

Using this calculator you will also be able to know which option will provide you maximum savings & higher cost offset.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

what is a silent second mortgage? is it a fraud?

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miller_st | Joined: January 17, 2007 04:47 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

It is one of the common mortgage frauds.

In this mortgage fraud scheme, the buyer takes/borrows the amount for down payment from seller by way of a non disclosed second mortgage. The lender thinks that borrower has brought his own money for making the down payment while actually the amount has been borrowed.

Further, this type of second mortgage is not recorded to conceal its status.

There are many other types of mortgage fraud schemes that you should be aware of. Please go through these two pages for more information about frauds to avoid falling prey to:

http://www.fbi.gov/publications/financial/fcs_report052005/fcs_report052...

http://www.realtor.org/rmomag.nsf/pages/BEvans200511212

Miller

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adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

yeh silent second is a fraud. You can know more about it at http://www.mortgagefit.com/know-how/silentsecond.html .

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Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I wanted to know which type of second mortgages are regulated as per UCCC. I searched through various sites but could not find any information on it. If any one can help, it would be great, thanks, btw, I am in Colorado.

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carnahandavid | Joined: December 21, 2006 04:07 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

James, Uniform Commercial Credit Code (UCCC) regulates 2nd mortgages which exceed the 12 percent per year annual percentage rate (apr) established in statute. And if the APR is below 12% then it does not fall under jurisdiction of UCCC.

For more information on this topic you can go through this following page: Colorado Department Of Regulatory Agencies, Office Of Policy And Research

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