Compare Mortgage Quotes

Refinance Rates for Today

Please enable JavaScript for the best experience.

In the mean time, check out our refinance rates!

Company Loan Type APR Est. Pmt.

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

I would have to say if there is equity in your home get it out now! Just to say there is better ways to invest your money besides letting it sit in a depreciating asset. Peter Scalise

Like | Dislike | Share | Posted: Fri, 10/30/2009 - 09:13 | Post subject:

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

The closing costs may vary from one state to another. As you haven't agreed to the terms and conditions of the lender, you should speak to few other other lenders of your area and check out what type of rates and terms you might receive from them.

Like | Dislike | Share | Posted: Sat, 08/28/2010 - 00:13

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

Can you get equity cash out of your home at purchase? I would like to know if it is legal to receive cash at closing if mortgage company is aware that you are getting cash back?

Like | Dislike | Share | Posted: Fri, 01/22/2010 - 17:05 | Post subject:

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

I HAVE A 2ND HOME WITH NO MORTGAGE, ALL EQUITY HOW CAN I TAKE OUT 85% OF THE EQUITY?

Like | Dislike | Share | Posted: Tue, 10/05/2010 - 19:22 | Post subject:

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

you need equity in your home for a second mortgage lien to be placed.

i think you're confusing "second mortgage" with "another mortgage" - a second mortgage is literally a second mortgage, after the first, on your home that you reside in currently. it seems like you are asking about a mortgage for a different property - that's a whole different discussion.

Like | Dislike | Share | Posted: Thu, 04/08/2010 - 09:41

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

Welcome bigboy,

Rather than taking out a second mortgage, you can go for a cash out [url=http://www.mortgagefit.com/refinance.html]refinance[/url]. This will help you in cashing in the equity that you have in your property which can be used to pay off the unsecured debt. If you take out a second mortgage, you would be liable for paying two mortgages every month. Considering that, it would be a better option to refinance the loan.

Like | Dislike | Share | Posted: Mon, 08/16/2010 - 00:13

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

Hi CHARLES,

As there is no mortgage on the property, if you meet the required criteria of the lenders, you will be able to get a mortgage using that property as a collateral.

Thanks

Like | Dislike | Share | Posted: Mon, 09/20/2010 - 00:55

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

I am not 100% understanding what a 2nd mortgage is. Does a home have to have equity in order to request a 2nd mortgage? We bought our home last year but due to the economy do not have any equity , we are considering a 2nd mortgage to pay off high interest rate credit cards. What is our options?

Like | Dislike | Share | Posted: Tue, 12/08/2009 - 23:56 | Post subject:

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

I have 2 mortgages and I apply for a government home loan modification. I was aproved for the first loan but the second loan was not included in the modification. The thing is that I couldn't keep up with the payments on that second loan and they told me that second loan is now a cash off account. It show in my credit report as a cash off accout what that means? I have tried to contact the bank but they said they can't find that account. What could have happened to that account?

Like | Dislike | Share | Posted: Mon, 12/06/2010 - 16:21 | Post subject:

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

Welcome Cherie,

Unless the property is sold off at the foreclosure auction, you will be liable for the maintenance of the property. However, you won't have to pay any mortgage payments. This is mainly because your bankruptcy has been discharged in your bankruptcy filing.

Like | Dislike | Share | Posted: Wed, 03/06/2013 - 21:10

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

We took out an equity loan 6 years ago when we purcashed our home. Now with the interests much lower we want to do a cashout refiance on our mortgage, will the equity load hender us in doing this?

Like | Dislike | Share | Posted: Mon, 02/08/2010 - 07:47

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

I owe approx 9000 on my home plus 10000 in credit cards and some high interest student loans. Is it possible to take out a loan to pay all that off using my house so I only have one payment instead of several? Also I recently had my home appraised, could I use that appraisal or would I have to still pay for another?

Like | Dislike | Share | Posted: Tue, 09/28/2010 - 00:34

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

in refinancing, if you have sufficient equity in the property, you can, indeed, combine the two balances and pay them off with one new mortgage loan. yes, that is considered a cash out transaction.

Like | Dislike | Share | Posted: Tue, 09/15/2009 - 06:35

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

If you have a both mortgages on a home and sell the home. I am very aware that the 1st mortgage must get paid off, but what about the 2nd? Is it the bank's responsibility to pay off the mortgage or the home owner? The reason I ask is my mother sold her house and with the 2nd loan had given me money, I thought that by selling the house the mortgages would be paid. It paid off her 1st mortgage but not her 2nd right away and she can still make the payments. Is this cause she asked to continue making the payments or the bank just isn't aware that the house was sold? I'm not currently talking to my mom so if anyone can help I would appreciate it. Thank you!

Like | Dislike | Share | Posted: Sun, 11/14/2010 - 17:24 | Post subject:

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

angelaw, a second mortgage is simply an additional mortgage on a home that is subordinate to the first mortgage. first, second, etc. are merely the sequential notations. in order to obtain a second mortgage, one must have equity in a property...not just equity, but a good portion of it. if you only bought your home last year in this troubled real estate market, the odds are awfully strong that you lack the equity that would allow you to borrow in that fashion. depending on how much you are seeking, and on your income, credit, etc. you may consider a personal loan. rates on those, of course, are higher than on mortgages, to account for risk.

Like | Dislike | Share | Posted: Wed, 12/09/2009 - 05:03

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

Do you sell any of your 2nd mortgages? I am a buyer

Like | Dislike | Share | Posted: Sun, 02/28/2010 - 10:41 | Post subject:

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

I have first loan $ 320,000 and line of credit $ 355,000 which has been taken by my son 3 years ago and it is on his name. Now I am in process to modify my first loan. After modification of first I know that second going to be my biggest problem, I want to know what are my options about second.

Like | Dislike | Share | Posted: Sat, 02/20/2010 - 19:18 | Post subject:

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

my house is in foreclosure, can I get a second mortgage to pay what I owe to stop the foreclosure

Like | Dislike | Share | Posted: Thu, 10/22/2009 - 14:18 | Post subject:

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

Hi Sheila,

This is not a mortgage company. This is a community wherein people discuss their mortgage issues and get suggestions from the expert. If you want a [url=http://www.mortgagefit.com/home-equity.html]home equity loan[/url], then you will have to contact the local lenders and check out if they can help you with it. You can also speak to the lenders of this community and seek a no obligation free mortgage consultation. This will help you know whether or not you would get a mortgage.

Thanks

Like | Dislike | Share | Posted: Sat, 05/22/2010 - 00:14

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

Hi pravin,

It would be better if you could pay off the first mortgage prior to taking out the second loan for a new property.

Like | Dislike | Share | Posted: Mon, 08/23/2010 - 00:23

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

Hi Susan,

You should contact the local lenders and either apply for a [url=http://www.mortgagefit.com/home-equity.html]home equity loan[/url] or go for a mortgage [url=http://www.mortgagefit.com/refinance.html]refinance[/url]. These options will help you in cashing out the equity that you have in your property.

Thanks

Like | Dislike | Share | Posted: Mon, 03/18/2013 - 00:45 | Post subject:

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

Hi just wandering if you can take out a second mortgage on my home from another country

Like | Dislike | Share | Posted: Tue, 09/28/2010 - 03:29 | Post subject:

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

Looking to sell a home that has a first mortgage and home equity line. Total balance is 80,000 more than the home is worth. If I sell and pay off mortgage and a portion of the equity line, will i still be able to pay the balance of the equity line over time as im doing now?

Like | Dislike | Share | Posted: Sun, 11/29/2009 - 13:23 | Post subject:

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

Hi Malia,

As you own your property outright, you'll be able to take out a mortgage on it. You'll be able to take out a first mortgage on it provided you meet the required criteria of the lender.

You will have to shop for the mortgage and apply for pre-approval from the local lenders. The lenders will let you know whether or not you would get a mortgage. They'll also let you know the type of rates and terms you would receive. You should seek a no obligation free mortgage quote from the lenders of this community and check out the type of rates and terms you would receive.

Thanks

Like | Dislike | Share | Posted: Sat, 07/17/2010 - 01:24

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

i am interest for equty loan $35000.-50000.
my first morgage is 304000. and value of the house is 5500000

Like | Dislike | Share | Posted: Mon, 11/02/2009 - 11:47 | Post subject:

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

well of course, that wasn't the question, was it?

intercom, if you mortgage your current home to purchase a new property and subsequently default on that mortgage, the lender will foreclose on its mortgage, i.e. the current property.

is there a remote possibility that a lender could find itself losing money and seek retribution by placing a lien on your newly-purchased property? well, of course there is, but i'd like to think that's kind of far-fetched to say the least.

go ahead and do what you have planned.

Like | Dislike | Share | Posted: Fri, 10/30/2009 - 14:18

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

Welcome idhelp,

As you don't have equity in your property, you won't be able to qualify for a second mortgage or HELOC.

Like | Dislike | Share | Posted: Thu, 12/02/2010 - 23:11

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi wonder!

Welcome to forums!

You can contact your lender and look out for home improvement loans. Check out if your lender offers home improvement loans or not. If not, then you can even contact other lenders for the same. You can even speak to the lenders of this community and seek a no obligation free mortgage quote. This will help you know what type of rates and terms you would receive.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Sun, 09/06/2009 - 20:37

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

i need to know what is the credit score for a second mortgage for an investmente propert when i have a stable job and my huby is self employee. How does it affect to lenders?
Thanks

Like | Dislike | Share | Posted: Tue, 11/10/2009 - 23:33 | Post subject:

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

We would like to consolidate debt from credit cards and a personal loan. We do not have a current mortgage. What is the best way to borrow money using our home equity...a home equity loan, 2nd mortgage, or HELOC? We've found that some lenders will not fund Home equity loans when there is no current mortgage. We have excellent credit.
Thanks.

Like | Dislike | Share | Posted: Fri, 06/04/2010 - 14:21 | Post subject:

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

Hi SPENCE,

If you don't have any other mortgage, then you can contact the local lenders and apply for a mortgage using the second home as a collateral. However, if there is a mortgage on one of your properties, then it will be difficult for you to get a mortgage. Moreover, if you take out a 85% of the equity, then you'll have to go for a private mortgage insurance (PMI).

Thanks

Like | Dislike | Share | Posted: Wed, 10/06/2010 - 01:57

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

I filed for bankruptcy in 2010 and got a discharged after my mortgage company filed for foreclosure. I got the discharge before the company foreclosed. Few months later I called the county to see if the house had been put up for sale. They told me that the foreclosure didnt go through, that the mortgage company didnt go through with it. A month or so later I found out the the mortgage company had sold the houst to another lender. They started sending me bills. I called them to tell them that the house was filed and discharged through bankruptcy. They wanted me to send them the discharge paperes which I did. They put the house for foreclosure for the second time now but Im still getting bills from the house even though I have been out of the house since 2010. Any advice? Is the house still mine?

Like | Dislike | Share | Posted: Mon, 03/04/2013 - 17:57 | Post subject:

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

though my move was only 8-10 miles, i used the equity built up in my former home to make a purchase of a new family home with substantial more land than previously i had owned. when my old home's sale date came around, i simply paid off that loan. i consider it substantial blessing that i had the opportunity to cash in from a sale and came out whole on the other side.

Like | Dislike | Share | Posted: Mon, 01/18/2010 - 19:10

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

Hi rumrmmy,

As there is a reverse mortgage on the property, there won't be any equity in it. In such a situation, you won't be able to qualify for a second mortgage.

Thanks

Like | Dislike | Share | Posted: Thu, 09/01/2011 - 21:17

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

I own a home that I owe roughly 235,000 on. It has as estimated market value of between 270-280 thousand dollars. I currently have about 35,000 in unsecured debt and would like to pay it off. Would there possibly be a second mortgage that would help me?[size=12:2e6f8518fd][/size:2e6f8518fd]

Like | Dislike | Share | Posted: Sun, 08/15/2010 - 12:44 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi zemlyanika!

Welcome to the forums!

You can [url=http://www.mortgagefit.com/refinance.html]refinance[/url] both the loans into one single loan at a lower mortgage interest rate.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Mon, 06/03/2013 - 22:29

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

Hi g,

You've mentioned that you purchased the property for cash. Thus, there's no mortgage on it. In that case, if you take a mortgage on the property, it would be your first mortgage and not second. However, in order to get a loan, you'll have to qualify for it. You should have a good credit score and a stable income for getting a loan.

Like | Dislike | Share | Posted: Wed, 11/25/2009 - 21:31

jerseypm's picture
jerseypm | Joined: November 15, 2010 10:01 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

First you have to make sure that the loan she recieved was a second mortgage and not a personal loan. I find it very hard to believe that She would be able to seel the home with a mortgage attached to it. When a new purchaser buys a home a title search must be done to assure the buyer that their are no liens attached to the house. So it is possible that she recived a personal loan and not one attached to the house.
Hopefully what she sold the house for is greater than what she owed and she can just go ahead and pay off the loan. Look at the HUD1 it is a paper that she would have recieved at closing that detils where all the money goes.

Like | Dislike | Share | Posted: Mon, 11/15/2010 - 10:51 | Post subject:

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

Hi clutei,

If your property is free and clear, then you can take out a normal conventional loan. You can use the money from the loan to pay off the credit card debts. With a good income and excellent credit, it will be quite easier for you to [url=http://www.mortgagefit.com/Mortgage-Basics/do-i-qualify-for-a-mortgage.h... for a mortgage[/url].

Thanks

Like | Dislike | Share | Posted: Fri, 06/04/2010 - 23:12

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

Hi Guest,

As the property is already in foreclosure, I guess you are delinquent in your mortgage payments. In such a situation, you won't qualify for a second mortgage. If you want to save your property from foreclosure, then you should apply for a loan modification with your lender.

Like | Dislike | Share | Posted: Thu, 10/22/2009 - 21:19

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

I have a reverse mortgage on my home,now I have bills that I need to pay off,can I get a second mortgage on the same home?

Like | Dislike | Share | Posted: Thu, 09/01/2011 - 10:50 | Post subject:

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

Are you planning to a second property? Your query is not clear. Please explain.

Like | Dislike | Share | Posted: Mon, 03/01/2010 - 00:53

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

that's a question for your second mortgagee to answer.

what you've just defined is a short sale. you need to negotiate with your lenders to even begin to contemplate such a step.

Like | Dislike | Share | Posted: Sun, 11/29/2009 - 19:47

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

What a great resource!

Like | Dislike | Share | Posted: Mon, 08/02/2010 - 08:42 | Post subject:

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

what is the income to debt ratio to qualify.

Like | Dislike | Share | Posted: Mon, 11/23/2009 - 12:32 | Post subject:

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

Hi charles,

You can contact your current lender and apply for a [url=http://www.mortgagefit.com/home-equity.html]home equity loan[/url]. Similar to your primary mortgage, he would judge your credit score and income before giving you the loan. If you want, you can even contact other lenders and check out the type of rates and terms they are offering you. If you get better rates with them, you can go for it. It is not mandatory to take the second loan from your current lender. You can even seek a no obligation free mortgage consultation from the lenders of this community. This will let you know the type of rates and terms you would get.

Like | Dislike | Share | Posted: Mon, 11/02/2009 - 21:18

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Jony!

Welcome to forums!

If the second mortgage lender forecloses the property, then you will be losing it. Thus, in that case, getting a loan modification on first mortgage will not be of any help. After a bankruptcy filing is discharged, the second lender can foreclose the property as he holds lien on the property.

I would suggest you to contact your second lender and apply for a loan modification immediately. Depending upon your situation, the lender will consider your request and let you know whether or not you will qualify for a modification.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Tue, 05/18/2010 - 00:13

amandacluett's picture
amandacluett | Joined: March 1, 2010 06:32 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Despite the world crisis, we can still purchase our own home with a flexible rate and low interest rate. There is still hope for a bright future.

Like | Dislike | Share | Posted: Mon, 03/01/2010 - 06:48 | Post subject:

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

we refinanced our primary home and took out equity for improvements doo we have to claim that money

Like | Dislike | Share | Posted: Wed, 02/10/2010 - 13:51 | Post subject:

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

was wondering if i should take a home equity loan for 50,000 or to do a mortgage to pay for a new home. right now i owe 11,000 on my current loan, with the 50,000 loan i would pay of the 1st mortgage of 11,000 and use the rest to put down on the new home..

Like | Dislike | Share | Posted: Sat, 12/05/2009 - 17:10 | Post subject:

Page loaded in 0.309 seconds.