amount of mortgage may be higher than the actual purchase price of the house?

Deal Score0

ask if you can use the surplus money to pay the debts of others, how to finance a new kind of reversed.

6 Comments
  1. Reply
    PelMel
    February 13, 2011 at 9:52 pm

    Not usually. The mortgage is secured by the value of the home. At one time some lenders were giving 100%+ loans, but those would be hard to find now.

  2. Reply
    Sexy Chica
    February 13, 2011 at 10:01 pm

    Yes, but those types of loans are hard to find anymore. Ask your lender about your options.

  3. Reply
    bdancer222
    February 13, 2011 at 10:43 pm

    Those 125% loans is how a lot of folks got themselves in trouble and are loosing their homes.

    It is a very bad idea to put other debts on your house. Even if the interest rate is much lower, you are stretching out the debt over a long period and will end up paying a lot more in interest.

  4. Reply
    april p
    February 13, 2011 at 10:58 pm

    Yes, but I believe that you would need to tell them it is for fixing up the place and your credit needs to be great. I suggest going to a different bank then what you want to do business with and ask them about the debt issue, then if they say it is a no go then you know to say it is for repairs.

  5. Reply
    ARIZONA
    February 13, 2011 at 11:29 pm

    Yes. That was very popular when the houses were appreciating so fast. Not anymore. As houses are tending to lower in value now, that kind of loans are suspended.

    One of the intentions of that loan was to use the excess of the money, and have it for improving the house and/or payingoff your debts. There are different types of home loans and you need to learn how to manage it so you will not have any problems in the future.

    A Reverse refinance is a completely different loan. This is only designed to refinance the primary residence of elderly people (more than 62 years old) and the house must have substantial equity available.

    http://www.foreclosureinprocess.com

  6. Reply
    GodBlessAmerica
    February 14, 2011 at 12:00 am

    Not anymore.
    They were doing 125% loans up until end of last year.
    If you have a loan officer with access to downpayment assistance programs then you can save the money you were planning on putting down and use that towards paying off your debt.

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