Explain second mortgage?
545504
Ok, a second mortgage is when you still are making your original pmt., but you take out what is called equity that is built up in your home. Say you bought your house for 100,000, and now it is worth 200,000. Now, most banks use the 80% rule. You take the 200,000 and subtract what you owe still on the house- say you owe 85,000. So, you have 115,000. Now, what is 80% of that? 92,000. So, you could get an equity loan (or a line of credit) up to 92,000. Now, say you borrow that, you will owe money on that. Technically, banks call it an equity payment, but a lot of people call it a second mortgage, because it is a loan against your home. A line of credit is a bit different in that say you get the line of credit for 92,000, but you only use a few thousand here and there. You only pay what you use. Say you pay it off, and then a month later, decide to use it for a vacation, then you would owe again.
1126192
Have you thought about seller financing for the other 20%?   You get your 80% mortgage loan from your bank and the seller carries the other 500k as a second deed of trust with a short carry period of say 3-5 years.    How you structure the note is negotiable of course as a principal and interest or interest only balloon payment, rate etc.   Some sellers just want out of the property and won't do it, but frankly if the property has credit tenants and positive NOI and positive cashflows after debt service of the 80%, the seller might be receptive to this (after all, no one knows the property better), especially if you either gave a little room on the interest rate, purchase price or other terms and conditions in exchange.\n\nA second idea would be you could probably use the equity in another property you might own (or any other type of investment really) as collateral on a loan for the other 20%.   There are definately a lot of ways you can do this, just make sure the numbers make sense and the cash flows can support it.
1146327
A credit line offered by mortgage lenders allowing a homeowner a second mortgage that uses the equity present in the customer's account as collateral.
1065960
You cannot sell the home without paying off the second mortgage. So either you go bankrupt on both, or you pay off both in full at closing. The bank gets their check before you do, and their lien on your title will show up in the title search. There's no way to recieve the funding from the home sale without satisfying all liens first.
853464
Anyone can have more than one mortgage (on different properties) as long as their credit is good enough for them to be accepted for the loan.  Think of people who own more than one house - some of them have to be mortgaged.\n\nIt's just hard to convince a lender that you are financially capable of handling more than one mortgage.
1072822
Check your Note for the 2nd mortgage you're trying to refinance carefully.  Many 2nds have prepayment penalties!!!!  That would make any changes probably not worth it, as they're usually somewhere around 6 months worth of interest in the first year.\n\nI would say, if you qualified for the first and 2nd to begin with you could probably qualify again, but I'm assuming your financial information has changed in the month since you purchased and this may not be the case.\n\nDid you purchase the house for under appraised value?  It would be extremely rare for a house to appreciate in the first month, although some areas of the country are moving up quite fast.\n\nI don't know if there is any good answer.  The best thing you can do is go back to  your original loan agent and ask.  It can never hurt and they're always willing to try to make things work and make their commissions!
880228
The mortgage will originate in CT and the lien will be on the VT property. I just sold a Dr in CT a second home in NH. Went well
116895
Yes.  A second mortgage note can be used as a down payment.  As a matter of fact, anything of value can be used as a down payment as long as both parties agree.  A lot depends on the seller of the home you are buying.  If it is an individual that can sell with owner financing they may be flexible enough to take part of the down payment in cash and the other as a note.  Be sure to check with local real estate laws in your state.  Each state is different.  Get a good real estate attorney to represent your interest and draw up the papers.  You should be fine.
321992
It is borrowing against the equity in your home you already have. If you have a 200,000 dollar house and you owe 80,000 on it, then you have 120,000 in equity. With a 2nd mortgage you can borrow against the 120,000 you have in your home as colatteral.\n\nIs it a good idea? It depends. You can usually get a better rate on a 2nd mortgage than you can with other kinds of loans. They are low risk loans for the lending institution-- they will take your house if you default. Thus, they can give you a better rate.\n\nIf you have quite a few working years ahead of you and feel you can pay it off, it might be a good idea. If you are nearing retirement, it might not be a good idea.\n\nIf you are going to use the money for a college education, it might be a good idea. If you are going to use the money for a weeklong cocaine and hookers binge, it might not be a good idea.\n\nOnly you can decide if it's a good idea or not.
784350
not enough info....two loans? 1st and 2nd?  home equity etc. unless there is equity in the home that you can access, the only option is a personal loan  unless you sell the house and have it deeded in both names...a reverse mort might be an option, however, that is usually only avail to seniors.....you could do a promissory note and use purchase money mort as a way to have the one party buy even amounts...ask a real estate atty
549200
Equity in one property, can make it easier for you to buy your next property using a lease with option to buy.  The seller will see you have a track record and you may appear as a more substantial buyer.\n\nThe lease payments allow you to control or live in the property until you can save up a downpayment to use towards taking complete ownership.  You do not pay tax on rent.  Your equity on your first property stays intact. \n\nYou can also borrow against your equity, and not pay tax on borrowed money.  An equity line of credit is sometimes more convenient, less expensive to originate, and at a better interest rate than a 2nd mortgage. \n\nSome creditors will look at your equity and issue a line of unsecured credit. A line of credit like this leaves your equity intact, and gives you money to spend towards your new property.  You would not pay tax as you use your line of credit because you are again borrowing money. \n\nIt is correct that you can sell your first property and cash in your equity, but then you would not be purchasing additional property, you would be replacing one property with another.  It is possible you may be able to sell just your equity.  That would mean you now have a partner or co-owner on your first property, and money to spend towards towards additional property.
332705
The down payment is a key factor. Usually the 2nd (line of credit) is at a higher rate and shorter term. Making the payments high.  The more down you can provide the lower your monthly payment will be. There are also many options like Interest Only and even some Negetive Amortized loans which have considerably lower payments than the conventional 30yr fixed paymetns. It ultimatly depends on what your long term goals are? \nBest thing I can recommend talk to a loan specialist at your local bank.
466623
1) Do not contact 'motgage guru' since on a purchase there is NO RIGHT of RECESSION; period. You only have a 3 day recession on a refinance of your primary residence. Adding a HELOC to a primary residence is a refinance transaction.\n\n2) It sounds like your getting the shaft... Either cancel if possible or start yelling! Once you sign those docs they are set in stone.\n\n3) On a HELOC the rate is based on the prime rate. When you received your GFE the prime rate may have been lower and then it increased since you got the GFE; currently prime is 7.75%.\n\nWhat it kinda sounds like to me is that your HELOC has an introductory teaser rate for a couple of months at 6.625 or there abouts but with the fully indexed rate at 12.3%. What the 18% is telling you is the maximum interest rate cap on the loan. If you take your 12.3% and subtract out the prime rate you have a margin of 4.55%. What this means is that when ever prime goes up or down, add 4.55 to the current rate and there you are.\n\nIf you want to speak to me in some detail about your deal I maybe able to assit you with a much better product.\n\nKevin\nkruorock@firstratelending.com 866-562-6838 x 106
841912
The holder of the second mortgage could in theory foreclose on your home, even though you're up to date with the first mortgage and the taxes.  It's conceivable that your situation (widow of a veteran) might give you some extra protections, but I think that's a long shot, and you would have to ask an attorney about that.  The suggestion some other folks have made to refinance is certainly worth looking at.  If the interest rate on your first and second mortgages is relatively high, it's possible that by refinancing (that is, getting a new loan to replace both old loans) you could afford the payments on the total amount owed. A call to the first lender or to any mortgage broker could answer that question.\n\nOne other thing to remember is that the second lender probably would like to avoid foreclosing, as it's expensive and time-consuming, and if you don't have much equity in the home, the lender may not get his money back.  So he may have an incentive to negotiate with you--that is, to take a smaller monthly payment or to agree to some other terms that would work for you.  There is no harm in contacting the lender and talking to him.
621680
I agree with the above answer.  You were right to move on.  My guess is that he realized he misquoted and couldn't get the rate he told you on the 30 year fixed.  Now he's avoiding you instead of taking responsibility for his mistake.  Just a guess.  \n\nThe 2/28 has its advantages and may be the better program for you, it depends on your situation.  I answered a question previously that explained the benefit of an ARM.  Take a look at my profile and check my old answered questions.\n\nI would suggest you find a mortgage broker you feel you could put your trust in.  Make sure you meet them face-to-face so you can get a feel for them.  There are tons of brokers willing to help you in the yellow pages.  When you find one you trust, ask them to quote you on both the fixed-rate 30 year and the 2/28 ARM.  \n\nAlso, check out my blog:  http://explaintome.blogspot.com\nIt will explain what mortgage brokers do and how the whole process works.\n\nGood luck!
1128621
When a property gets foreclosed on, and it's the first lien holder that is doing the foreclosing, then the second and third and fourth (etc.) will get wiped out at the foreclosure auction. What an investor will do is to buy/tie up the property from the defaulting owner and see if he can discount the first and second. The second will most likely agree to a small amount (usually 7-10 percent) because they will lose everything once the property gets foreclosed on. The first will usually accept a 20 percent hit.\n\nNow what you quoted is that the second note holder was stating that he will own the property by buying it from the person in default and take over the first position's loan payments and make it current. Therefore, he is not interested in selling his note to the investors. The investors in that example were idiots for not controling the property first or the owner didn't want to sell. The investors were hoping to buy the second note at a discount and bid at the auction and own the property with at least 15 k equity plus whatever the homeowner had in equity.  \n\nYou can buy any note by approaching the lending institution that holds the note and making an offer to buy it. You will need cash to do so.\n\nAlso, to clear up the quoted reference, you can purchase property "subject to" existing liens/loans. Taking property "subject to" means that you will take over the payments, but the old owner is still responsible for the loan(s). So if you stop paying the mortgage/trust deed, the lending institution will go after the old owner and start foreclosing on the property. Buying property "subject to" existing loans is one way where someone with no money and/or credit can get into a home and own it. The second note holder was buying the property from the defaulting owner using the "subject to" clause.\n\nI either confused you or helped you. Either way, I just saved you hundreds of dollars in late night real estate infomercials! ;)\n\nE-mail me if you have any questions.\n\nRegards
1074587
An individual is allowed to own a second house and still claim all the interest and property taxes on his return.  There are dollar limitations to the interest deductions however.  He should not claim it as a rental property, as that would create adverse tax effects when sold.\nIf your friend is wealthy enough to handle the additional house payment, I would suggest he spend a few extra bucks and consult with a competent tax professional.