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 brindirhea
Joined: 09 Dec 2008
Posts: 1
1.36 Dollars($)
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 Posted: Tue Dec 09, 2008 11:51 am Post subject: Is a second mortgage best in this case |
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| We owe $97,000 on our 15 year mortgage. Our house was just appraised and listed for $295,000 however we need $60,000 for land purchase now. Is a second mortgage the best option now. |
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parmoney
Joined: 05 Dec 2008
Posts: 37
11.32 Dollars($)
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| Posted: Tue Dec 09, 2008 3:30 pm Post subject: |
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I don't like seconds (high interest rates or teaser arms) but would need more details about the 15 year mortgage your in.
How much time remaining?
Interest rate?
etc. |
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Jo
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| Posted: Tue Dec 09, 2008 11:01 pm Post subject: Second mortgage? |
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| 7 years left and interest rate is 4.25 |
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parmoney
Joined: 05 Dec 2008
Posts: 37
11.32 Dollars($)
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| Posted: Wed Dec 10, 2008 9:50 am Post subject: |
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awesome loan!
The land your looking to purchase, is the price 60k or are you using this as a down payment and financing the remainder? |
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sara
Moderator
Joined: 05 Jul 2006
Posts: 1679
Location: New Brunswick, New Jersey
315.11 Dollars($)
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| Posted: Thu Dec 11, 2008 3:29 am Post subject: RE: second loan for land purchase |
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You're right Parmoney, it's indeed an awesome loan. I mean it's after a long time that I hear someone mentioning such a low rate on a fixed rate mortgage. It's not clear from the OP's question as to whether or not he needs the money for the down payment. But I suppose a second mortgage can be an option worth considering, isn't it?
I could have suggested a cashout refinance of the existing loan. But it doesn't make sense especially if the OP already has a low rate on the existing mortgage. He won't actually benefit from the low rates.
Take Care |
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williamwfergusonjr
Joined: 11 Dec 2008
Posts: 7
4.50 Dollars($)
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| Posted: Thu Dec 11, 2008 6:59 am Post subject: |
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| If you are sure your house will sell, take a second as a bridge loan, and pay it off at closing. People do this type of bridge loan everyday. It has nothing to do with the terms of the first mortgage. The only thing that matters here is the market where your house is, and if for sure it will sell before you go broke paying two payments. If you are in a decent market and the appraisal is correct, a bridge loan is the right thing to do. |
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parmoney
Joined: 05 Dec 2008
Posts: 37
11.32 Dollars($)
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| Posted: Thu Dec 11, 2008 10:21 am Post subject: |
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| I would check with your local credit union (if your a member). They tend to have better 2nd's or they may even have a loan on the land your looking to buy without encumbering your owner occupied residence. |
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