Mortgage second » Fixed Rate Loan

I Need Adjustable Mortgage Help – How to Save Your Home From a Rising Adjustable Mortgage Payment

admin — Fri, 30 Apr 2010 08:44:50 +0000

The sub prime mortgage crisis and falling property values have left many home owners across the country in desperate need of some adjustable mortgage help.

While many of these borrowers need assistance many just do not know where to turn or who to call in order to save their homes.

How To Get Adjustable Mortgage Help

The very first thing you should do if your ARM has adjusted is to try and refinance into a fixed rate loan. This is by far the best way to stabilize your payments and get yourself squared away.

What If You Cannot Refinance Your ARM

If in the event you are unable to refinance you really only have one option left on the table and that is help from your current mortgage lender.

This starts with a simple phone call and explaining the situation to them. You may have to call and plead your case a few times for them to listen but it is an effort that is very well worth it.

What Will The Lender Do.

In most cases the lender will either change your loans terms to either a fixed rate or extend your adjustable mortgages fixed rate period.

The lender may also offer to let you make up any past due payments over time by either adding them to the back end of the loan or letting you add extra money to your payment every month until you get them paid back.

More and more the companies that hold mortgages are being very flexible to keep borrowers in their homes and foreclosures to a minimum, because after all they lose money on a foreclosed property.

For this method to be the most effective you must let your lender know about your adjustable mortgage problems early on. This is very important as it can save not only your home but also your credit rating!

By: Darin Sewell

Hybrid Home Equity Loans Changing the Face of Second Mortgages

admin — Mon, 29 Mar 2010 19:07:19 +0000

Applications for home equity loans and second mortgages recently hit a 15 year high. According to Freddie Mac, “88% of homeowners who refinance their homes in the 1st quarter got a mortgage at least 5% larger than their first loan.” Since this was the largest increase since 1990, and the Fed continues to increase key interest rates, it is my contention that the demand for cash and the ability to finance quickly is the greatest it has been since World War II.

“The reality is that some people still believe the interest rate are under 6%,”said John Allen from Laguna Beach, California. John continued, “If I need cash for home improvements..Why wouldn’t I just take out home equity loan since my first mortgage rate is under 5%.” John’s mentality mirrors many of my borrowers’ frames of mind of late. Consumers are much more educated than they used to be about financing and taking out second mortgages. First time homebuyers don’t hesitate to get subordinate financing to help them accomplish their goals. Some people like John just want to finance the construction for pool and spa, but most of my borrowers are focused on consolidating credit card debt so they can cut their expenses and have access to more money at the end of the month.

Some interesting home equity products have rolled out recently. Companies like BD Nationwide Mortgage and Ditech are offering larger 125% loans, and convertible equity credit lines. They are called convertible, because they start out as variable rate credit lines, but at any point you can convert portions of the line to a fixed rate loan, and still keep the unused portions of the line of credit open for revolving credit. These hybrid home equity loans are changing the face of second mortgage products and they offer powerful features that meet the needs of a typical family as well as the savvy real estate investor.

By: Lynda Nelms

What Is A Second Mortgage?

admin — Fri, 04 Dec 2009 12:46:42 +0000

A second mortgage is a loan that is secured by the equity in your home. When you obtain a second mortgage loan the lender will place a lien on your house. This lien will be recorded in 2nd position after your primary or 1st mortgage lender’s lien, hence the term second mortgage.

A second mortgage is also sometimes referred to as a home equity loan. There is no difference between a home equity loan and a second mortgage. These are just two different terms for the same subject.

A second mortgage can either be a fixed-rate loan or an adjustable-rate credit line. Interest rates and loan program terms will vary from lender to lender so it is important to shop around and compare before committing to any one offer.

Loan proceeds from a second mortgage loan can be used for just about anything. Many consumers take out 2nd mortgage loans to consolidate debt, do home improvements or pay for their kids college education. Whatever you decide to do with your loan proceeds it is important to remember that if you default on your payment you can lose your home so you will want to make sure that you are taking the loan out for a worthwhile purpose.

Another plus of a second mortgage loan is that the interest you pay back on the loan may be tax deductible. Consult your tax advisor regarding your personal situation but in most cases the interest is 100% fully deductible as long as the combined loan to value of your 1st and 2nd mortgage do not exceed the value of your home.

For more information on second mortgage loans, or to compare rates and programs of second mortgage loan lenders visit http://www.equityloansource.com

By: Levetta Rivera