When you buy a house you take out a mortgage from Bank A. Bank A takes the first mortgage on your property. But let us say you need extra money which you do not have right now, so you go to Bank A to borrow money, but they say that your first mortgage is the only money they are willing to give you. So what you do is you go to Bank B. Bank A may not be willing to give you the loan, but Bank B thinks it is okay to have bad credit 2nd mortgage since you have equity which could cover up your loan.
Most people who get a second mortgage are people in dire need, but if you really do not need one, don't. But if you already have bad credit 2nd mortgage, pay up as fast as you can. It is bad enough that you have financial worries, it could be worse for you if you do not pay as soon as you can.
Thursday, September 24, 2009
How to have a second mortgage refinance
Refinancing your second mortgage has been made popular in recent years. Say, for example, you have your first mortgage when you purchased your home and maybe you took out a second mortgage which could either be a home equity line or credit or a fixed rate second mortgage. The two payments combined would create a significant monthly repayment sum and therefore you are interested in wrapping them together. Second or 2nd mortgage refinance is a very simple process. Seeing it as if it is your first mortgage refinance would help you to understand better.
Now, here is the mechanic of the process. When it comes to closing the deal, the company that handles your transaction is going to order a pay off from your existing first mortgage and for the current second mortgage so they can get an amount to pay the two loans off combined.
So, you see, second mortgage refinancing is not as different as in comparison to refinance your first mortgage.
Now, here is the mechanic of the process. When it comes to closing the deal, the company that handles your transaction is going to order a pay off from your existing first mortgage and for the current second mortgage so they can get an amount to pay the two loans off combined.
So, you see, second mortgage refinancing is not as different as in comparison to refinance your first mortgage.
Number 13 is good for your second mortgage loans
If you are one of the many homeowners who purchased your primary residence with an 80-20 mortgage, or if you took out a second mortgage loan in the past few years, did you know that you can erase that second or 2nd mortgage loans from your home in a chapter 13 bankruptcy?
The thirteenth chapter of loan modification offers an important and often overlooked option to consumers who have a second and even a third residential mortgage on their residence. If the current fair market of your home has been determined by an appraisal or prepared by a license real estate appraisal is below the present outstanding balance of your first mortgage including any arrears, your second mortgage loan can be stripped. And the debt associated with it can be classified as a general unsecured debt, like a credit card debt. To benefit from this provision, you would have to meet the requirements in accordance with the law.
The thirteenth chapter of loan modification offers an important and often overlooked option to consumers who have a second and even a third residential mortgage on their residence. If the current fair market of your home has been determined by an appraisal or prepared by a license real estate appraisal is below the present outstanding balance of your first mortgage including any arrears, your second mortgage loan can be stripped. And the debt associated with it can be classified as a general unsecured debt, like a credit card debt. To benefit from this provision, you would have to meet the requirements in accordance with the law.
Second home mortgages – how to get them?
Do you need second or 2nd home mortgages? A second home mortgage means a loan that comes after your first loan. It is also called subordinate loan or a second mortgage. You can acquire a second home mortgage by going to your local bank or your local mortgage broker. They can act on your behalf and get the second mortgage from a different bank.
Basically, the second mortgage goes behind your first home mortgage. The only difference between the second loan and the first loan is that you do not pay any taxes on the second one. The reason for this is that you pay taxes on your first home mortgage. The only thing you have to worry about your second home mortgage is just the monthly payment for the amount you borrowed. The amount you will pay will depend on the interest rate and the terms of your loan and this could be ten, 15 or 20 years note.
Basically, the second mortgage goes behind your first home mortgage. The only difference between the second loan and the first loan is that you do not pay any taxes on the second one. The reason for this is that you pay taxes on your first home mortgage. The only thing you have to worry about your second home mortgage is just the monthly payment for the amount you borrowed. The amount you will pay will depend on the interest rate and the terms of your loan and this could be ten, 15 or 20 years note.
Equity for your second mortgage
Generally, the way the bank determines the lendable equity for your second or 2nd mortgage is through the value derived from the loan calculation. To help you understand this concept, let us assume that your home is worth $100,000. And, banks do not like to lend more than 90% of the property value. So for example, your first mortgage is worth $80,000 that is 80% of the value of the property. They may allow you to go up to 90% which would leave you with $10,000 available for either a home equity line of credit or a second mortgage.
So depending on how much your first mortgage balance is, just take 90% of the value of your home and subtract that to your mortgage. The remaining amount or the balance of equity is the amount the bank will allow you to tap into your second mortgage or home equity line of credit.
So depending on how much your first mortgage balance is, just take 90% of the value of your home and subtract that to your mortgage. The remaining amount or the balance of equity is the amount the bank will allow you to tap into your second mortgage or home equity line of credit.
Wednesday, September 23, 2009
Remortgage rate
Over the past months, remortgage rates have been on the increase. The main reason for this is the inflation fears and this has affected the market. The rates have been going up over the last few months. However, they have started to move back down. But with the volatility of the remortgage rates, they have started to move back up again. It does not matter how long you have your mortgage because if you check out over ten years now, the remortgage rate has moved down a bit.
However, if you still check out its movement over the past few weeks, it is pretty much the same or even a point higher comparing it over the last months.
Taking on a remortgage may sound attractive, but you need to be careful because of the volatility of the remortgage rate. Many investors have lost confidence since there is a lack of government backing. Being properly informed about this may well save you from taking on a new remortgage.
However, if you still check out its movement over the past few weeks, it is pretty much the same or even a point higher comparing it over the last months.
Taking on a remortgage may sound attractive, but you need to be careful because of the volatility of the remortgage rate. Many investors have lost confidence since there is a lack of government backing. Being properly informed about this may well save you from taking on a new remortgage.
Mortgage rates refinancing
Mortgage rates refinancing, do you need it? According to a couple who owns a real estate business, you can have loans for the different types of mortgages. They say that mortgage rates financing are still low at this time. If you allow this couple to help you, they can actually help you refinance your mortgage rates. Although I am quite skeptical about loans, it may be the most practical way to deal with debts.
Many financing agencies can help you realize what may be holding you back from homeownership. In fact if you have an adjustable rate mortgage, now may be the time to consider going for a fixed rate mortgage before it adjusts. Many real estate websites help people acquire mortgage rates refinancing. If you are being offered to have your mortgage rates refinanced, make sure you have all the right information. You would not want to get into something that you will regret later.
Many financing agencies can help you realize what may be holding you back from homeownership. In fact if you have an adjustable rate mortgage, now may be the time to consider going for a fixed rate mortgage before it adjusts. Many real estate websites help people acquire mortgage rates refinancing. If you are being offered to have your mortgage rates refinanced, make sure you have all the right information. You would not want to get into something that you will regret later.
Debt consolidation secured loan
Since many people are faced with a lot of debts, the best way to deal with this is to have a debt consolidation secured loan. To secure these loans, you will have to provide collateral such as your car, house or other investments.
There are quite a few places where you can look for these loans. Most large cities have consolidation lenders locally that specialize in this type of loans.
If you are looking for agencies that provide such services, the Internet is a great source that can help you a lot. It can provide with valuable information that you may find hard to look for. You will not have to go from office to office inquiring of what they can offer you to consolidate your debt. Debt consolidation secured loan may sound so complicated, but with the right help from the right people you may find that it may be the easiest thing you may ever decide taking on.
There are quite a few places where you can look for these loans. Most large cities have consolidation lenders locally that specialize in this type of loans.
If you are looking for agencies that provide such services, the Internet is a great source that can help you a lot. It can provide with valuable information that you may find hard to look for. You will not have to go from office to office inquiring of what they can offer you to consolidate your debt. Debt consolidation secured loan may sound so complicated, but with the right help from the right people you may find that it may be the easiest thing you may ever decide taking on.
Bridging loans: why did I want it?
Why would I want bridging loans? It is easier. I put up a loan for what I thought would be my house until my golden years. However, when I saw my dream house, I knew I had to get it. So what I did was I put my house up for sale. A bridge loan made it possible for me to get cash out for a down payment so that I could have the money I needed for my new dream home. I was able to achieve all this while I was waiting for a buyer for my first house.
The nice thing about bridging loans is that it can hold back from six to twelve months of payment. Isn't that sweet? That way I did not have to pay for two house payments for two properties at the same time. Bridging loans is a great way to get the property you want when you thought you couldn't.
The nice thing about bridging loans is that it can hold back from six to twelve months of payment. Isn't that sweet? That way I did not have to pay for two house payments for two properties at the same time. Bridging loans is a great way to get the property you want when you thought you couldn't.
Thursday, August 27, 2009
Subscribe to:
Comments (Atom)