- This topic has 7 replies, 5 voices, and was last updated 9 years, 2 months ago by Anonymous.
- May 1, 2011 at 3:05 am #420324AnonymousInactive
Yes it is a second mortgage. Call a mortgage broker to help you find the best deal for a stand-alone second mortgage. If you are in Florida I can help you; you can email me on yahoo.
- May 1, 2011 at 3:56 am #420325AnonymousInactive
yes it is considered a 2nd mortgage its a combo loan so you wouldnt have to set up an escrow or pay mortgage insurance, i would say keep that 1st that 5.25 is a great rate, there are some banks out there that will offer a stand alond second at a fixed rate, depending on the amount of equity in your home, WAMU has great rates now as well as Countrywide, you also have the option to refi to 1 loan but if you are over 80% loan to value you will have to get escrow and most likley PMI, but good luck to you i hope i gave you the answeres you needed
- May 1, 2011 at 4:42 am #420326AnonymousInactive
This answer to this depends on how much equity you currently have in the house. Have you made any additional payments. The reason is simple. If the house has declined in value you may owe more than the house is worth. This is the risk you take with 100% financing. When trying to refinance you will need to get another appraisal conducted. If there is not enough equity to borrow against, you are going to have a problem getting a refinanced second mortgage.
- May 1, 2011 at 4:55 am #420327AnonymousInactive
You may not want to hear this, but your perception of what a reasonable rate is and what your lender thinks is a reasonable rate are completely different. While you are looking at your rate for your 20% loan and comparing it to your first, your lender is pricing your second mortgage to adjust for the increased risk of lending out 100% of the value of your home. If you are looking to replace your current second mortgage, understand that there are no real deals out there for stand-alone second mortgages and there are not very many lenders (especially now) that offer stand-alones. Your best bet would be to look at a HELOC (Home Equity Line of Credit) to pay off your second mortgage which would be priced at the Prime Rate plus or minus up to one percent and would have minimal or no closing costs. If it makes you feel better though, you are still not in a bad loan structure considering the blended rate that you currently have of 6.05% (5.25*.8 + 9.25*.2) which is not currently available for 80% financing let alone 100%. Also you should be looking at a worst case blended rate of around 6.65% based off of what I am assuming is a 6% lifetime cap on your second mortgage adjustments.
- May 4, 2011 at 7:54 am #201319AnonymousInactive
cost 125k what happends to the other? money do you keep it… or could it apply to the closing cost.
- May 5, 2011 at 2:10 am #258416Hassie HibbsMember
Your loan would be your purchase price so the lender will only fund that much. In some cases, lenders allow for you to borrow the closing cost and that would be added to the loan. Now a days, though lenders are very strict and there are hardly any investors that would do this now. It doesn’t matter how much you are approved for it is what you are borrowing would be the loan amount. the $150,000 approval would be how much you are qualified to borrow.
- May 6, 2011 at 11:55 pm #265137AnonymousInactive
Just because you approved for 150K, doesn’t mean you have to take it. Just take the 125K and you will only have to pay for that. If you want you can wrap in the closing cost to say 130K, as long as your total amount is less than 150, it’s ok.
In a nutshell, they just say they trust you up to 150K….
- May 8, 2011 at 5:13 am #266314AnonymousInactive
You just get the loan for the value of your house. Depending on the type of the loan you’re approved for, they DO let you borrow more than 100% of the value of the house, but typically the interest rates are higher.
Most people get the seller to pay closing costs, something to think about.
It sounds like you need to do some more research about the home buying process. It’s a HUGE investment and a lot of people go into it without knowing as much as they should. To keep from feeling like you got suckered into something, please do as much research as you can & then still find a real estate agent and real estate attorney who will explain the whole process to you from start to finish.
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