Are Second Mortgages Hip Again?

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With the Fed chairman continuing to raise interest rates, the refinance boom for first mortgages may be over. Over the past 3 years, millions of homeowners were lucky enough to lock into a thirty year fixed rate mortgage at 5.5%. With the market changing and rates climbing, it’s time to consider a second mortgage to get cash.

Obviously, the demand for money still exists, but consumers are looking for options to refinance their existing first mortgages. Most homeowners don’t want to touch their 5.5% 30 year fixed rate loan. These same homeowners are more excited about getting their cash through a second mortgage loan. Of course, interest rates are higher with second mortgages, but this is a great solution for someone who needs cash but doesn’t want to refinance their low-rate mortgage. With market changes, loan officers offering second mortgage products may have had a good few years.

Popular Second Mortgage Programs

125% Second Mortgage – No Equity Required! You can borrow more than the value of your home. These are great fixed rate loans for first time home buyers looking to make home improvements or consolidate debt. Must have a good credit score, and a residual income of more than $3,000 per month in most cases. No Mortgage Insurance Required!

Full documentation required

First time home buyers are fine

100% Second Mortgage Fixed Rate – Fixed payments and fixed rates make people feel secure. There’s no better way to consolidate credit card debt or make home improvements. There is a wide range of credit allowed up to 100% CLTV. (Bad, Fair and Good Credit) With some programs allowing a loan to income ratio of up to 55%. Some loan programs will go 100% behind a negative amortization or a balloon loan. No Mortgage Insurance Required!

Declared Income Loan Available

Primary residence or second home

100% Home Equity Line of Credit – Variable Rate – Interest only payments have become very attractive to homeowners looking to increase their cash flow. Home equity lines are more flexible than fixed-rate second mortgages because you don’t have to access the entire money at once, and you only make payments on the portion of the equity line that you accessed. There is no better form of fund for emergency purposes than a home equity line of credit. If you never need to touch the funds, you never pay any interest. There is a wide range of credit allowed up to 100% CLTV. (Bad, Fair and Good Credit) With some programs allowing a loan to income ratio of up to 55%. No Mortgage Insurance Required!

Declared Income Loan Available

Primary residence or second home

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