Posted: Wed Apr 16, 2008 8:49 pm Post subject: Looking for banks for a second mortgage.
We just purchased a house with financing at a 80% LTV ratio. We were looking to take out a second mortagage for 10% to do some remodeling. With many considering San Diego a declining house market, some have suggested to turn to banks outside of CA, since we cannot find any local banks to do the 10%. Do you have any recommendations for any specific lenders we could turn to? Thanks.
Posted: Wed Apr 16, 2008 9:41 pm Post subject: RE: 10 percent second mtg for remodelling
Welcome Logangodinho,
If San Diego is a declining market, then I suppose you take out the second mortgage only when you are sure of being able to pay it off. Or else a better option will be to take out a cash-out refinance loan worth more than the loan balance. So, while you can pay off the existing loan, you'll have extra funds too for carrying out the repair work. _________________ Procrastination is the enemy of your financial sucess
Adonis has given you good suggestions. BTW when have you got the mortgage? You cannot do cash out refinance within one year after taking the mortgage.
IF you want to take out a second mortgage then you will have to pay higher interest rate. You need to give more detail so that we can help you better .......... Like your credit score, Yearly income....... credit history and employment history etc.
You can also get No-obligation free consultation from the rated lenders of this community to know whether you should go for second mortgage or not.
in a declining market, you will have trouble obtaining secondary mortgage financing from any lender, regardless of location. all lenders are aware of declining markets, and it would be pure folly for someone to step in and grant a loan that will already be in jeopardy prior to the approval.
your best bet would seem to be the sub-prime markets that still exist. _________________ George M. Akerley
Senior Loan Officer
Freedom Mortgage Corporation
37 Jerome Avenue
Bloomfield, CT 06002
860-286-0444
Posted: Thu Apr 17, 2008 11:13 am Post subject: 2nd Mortgage
I agree with Adonis, Depending on if you qualify, doing a FHA refinance with cash out may also be an option. If you must have the cash then you may have to weigh your options and come up with the most cost effective solution _________________ Atul "Al" Agarwal
Mortgage Loan Officer
Bank of America
904-962-2000
I like to work with 1st time Home Buyers and specialize in Down payment Assistance as well as FHA/VA.
Posted: Thu Apr 17, 2008 8:43 pm Post subject: More Info
Thank you everyone for your responses. Here is a bit more info as requested. House was just purchased a month ago for $1,725,000. Loan was for $1,380,000 and $345,000 was the 20% down. We are looking to take out a second mortgage for 10% so there would be at least 10% equity left in the house. I am well aware of the fees and the fact that the second mortgage would be at a higher interest rate. Neither of those is a major concern or problem becasue we are capable financially of making the extra payment every month. Credit scores are in the mid-high 700's.
At this point it is just trying to find lenders who would do the second mortage.
Based on this additional info, if someone could point us to some lenders or as the Moderator put it "subprime markets" it would be greatly appreciated.
If you do not have any problems to pay the fees or the higher interest rates then this is very good. Hope yo will not face any mortgage problem but I should suggest you not to take sub prime mortgage as you know so many foreclosure is occurring for this sub prime loans.
If you want to take second mortgage you can request for no-obligation free quote from the rated lenders of the community.
Hope it helps. _________________ Good is the Enemy of Great.
logan_godinho
