Home Equity Loans – second mortgage

Brian G asked:


My wage is approximately 55% than my wife’s
This will be our 2nd home
With our first home, I am the only one on our 1st loan; we co-signed for the second loan (which represents our equity line and)
We both have comparable credit scores
Also, should mention that one of our homes is an investment home/rental property
And with this question, wondering what the pro’s and con’s of each scenario would be. (Me on the loan alone, or both of us on the loan)
Thank you

TOMAS

pcary2000 asked:


Hello!! I have struggled hard and have not missed a single payment to any of my lenders. However, I do have a financial hardship. I have a second mortgage for a second property which I amtrying to sell but I can’t. And also, unfortunately, my son (3 years) is sick. I will have to pay someone for taking care of him (he can’t go to a regular daycare because illness is infectious) while I try to keep my full time job (his insurance also depends on me). I’m very confused because I don’t know how to write the hardship letter and all examples I find is from people that are behind in payments or with variable interest rates. If I tell them, that my problem is the second property (which part of the debt is in my home equity line, maybe they will deny me. I Could you please help? Thanks a lot.

WINSTON

lb1 asked:


here is my situation, I have two rental homes. One that has o equity. One home literally has negative equity with a 30,000 mortgage and the other has approx. 25000 value with a 60,000 mortgage.

The first home is un rentable and the second home has been vacant for 1 year. (have not been able to find tenants)

Until now I have been able to pay the mortgages to avoid damaging my credit. I just lost my job and am not sure what I should do as I wont be able to pay the mortgages much longer.

I want to keep my own home.

What do I do, just let the rental homes forclose? file bankruptcy?
What is the best option as I am not sure what to do?

JARVIS

MUSCLES asked:


If not, can someone explain how a second mortgage works in laymans terms? Can I take out a second mortgage if I haven’t had my house that long?

DYLAN

puppiesnmarshmellows asked:


This is going to be embarrasing, but i don’t know if we are doing ok or not. I don’t know what the norm is for money leftover after bills but according to a debt/income ratio i did today we are at 34% which is good, i guess.

My husband makes 1333 twice a month (that is what we see after taxes) there is a addtional 125 going straight to our savings account each month on top of the 1333 twice a month.

Our bills are as follows

first check
car-291
insurance-62
elecric,gas,water 200
credit card 170
cable-93
which leaves 517 left for gas and groceries

second check
mortgage 600
home equity 103
home phone and internet 100
cell phone150
which is a little tighter at 380 for gas and groceries

total for the month we have 917 left in our checking, including the 125 that is in our savings its 1042 a month.
I just am curious how we are doing financially? I’m scared to death about this kind of thing and fear we are doing something wrong. We are military so no health ins.
well we’re military so no job loss..and no unexpected medical bills. we really don’t have to worry about that because its a secure job.
no credit card is what we decide to pay on it..that isn’t the minimum payment. We have a home phone and a cell phone because up until a month ago we only had a home phone. Effective the 26th we will no longer have that home phone. The second mortgage was to redo our home, its almost paid off now, it was only 10,000.
oh and why don’t i work? I have two small children and noone to care for them. We don’t live near our families. There is NOTHING wrong with being a SAHM parent.

ARNOLD

427 in dog years asked:


Was living in one condo and needed money for down payment on a larger one for my family. The first condo was for sale but is just sat, so I rented it, when the new one was completed. Now the payments on both are crushing me. $1650 on the first and $2,350 on the new one. I can handle the second one okay, that’s where we are living now.

On the first condo, I borrowed money on a home equity loan for additional down payment on the second. First mortgage is for $145K, the amount on the home equity is $35K. So I owe a total of $180K, the market is now $159K

On the home equity I can still write a check for $15K…….at the time they issued the loan it was worth more……..

Did I mention that my tenant just moved out, he was only good for $950 per month…….so $1650 minus his 950 left me $700 per month in the red. Now it’s the full $1650……..this is a seasonal community and the rental market is weak…..

Here’s the question, if I write the a check for the remaining $15,000, left on the home equity from the first condo……..then just let the bank have the unit back……..

what are they likely to do and
what will they do to me?

The $15K in money I clearly have no intent of paying off unless by some miracle the unit sells for $195 and I can wipe out everything and walk away…..

If you have any other input I’d appreciate it. Thanks

Thanks from Florida

BRADLEY

Andrew asked:


I am seeking a personal loan in the amount of $30,000.00. I am willing to repay this at 12% interest over 60 months with the payment being $560.00 monthly.
It is needed to pay off my second mortgage and some credit card debts.
I can easily afford this payment if the other items are repaid. I currently do not have enough available equity in my home or I would go through a bank, paying off my second mortgage will give me about $28,000 of equity in my home, thus being able to refinance my first mortgage, thus paying off this loan sooner, which is what I am aiming for here.

ERNESTO

KarenB asked:


I own my home, but do not have enough equity built to refinance and get $50K to pay off credit card debt-what are my options? Someone told me a second mortgage may work, but I have only owned my home for 14 months. Balance on my current mortgage is $77K, home value is max $90K.

WALTER

Joel Gray asked:


If you are planning on buying your dream home, a second or vacation home, or even planning to relocate with a new home purchase, there are definitely a variety of home loan options to check out.

Many banks, financial institutions and private lenders offer home loans; home equity loans, private loans or equity line of credit loans. All good lending programs will consider this, as it helps you to borrow the money, just by using your home on collateral basis.

What is equity?

In financial jargon, it is said to be the difference between the cost of home and how much you owe on the mortgage or combined mortgages, in the case where you have a second mortgage out on the property. In other words the value of your home is the equity you have built into it.

Home Equity Loan Rates

You can find out what current home equity loan rates are, compare them with several different financial institutions and use handy online calculators at BankRate.com: http://bankrate.com . For example, as per the current statistics of the Bank of America, their home equity loan interest rates are as follows:

1. 30 year with a fixed rate is 5.81 percent on the amount taken as loan.

2. 15 year with a fixed rate is 5.51 percent on the amount taken as loan.

3. 30 year with a fixed jumbo is 6.12 percent on the amount taken as loan.

4. 15 year with a fixed jumbo is 5.78 percent on the amount taken as loan.

The monthly payment of a loan is calculated to be around $400 to $1000.

Home Improvement Loan

If you want to fix up your home, then you will want to search for information on a home improvement loan. These types of loans are designed for the people who want to finance their home repairs, renovation of their homes, room additions to their old homes, etc. without going for equity loans.

The benefits for this kind of loans are:

No or limited requirement of collateral.

Interest rates are competitive and are lower than line of credit loans.

Approval of loans is faster

Information of the loan and the transfer of the balance both are can be done through online banking.

Transfer of funds for the payment of loans can be done through online banking access.

Now that you have been shown the ins and outs of getting a home loan, what do you think that next thing you should do is?

So get a loan and get ready to move into your dream home today!



ROOSEVELT

staceyorlowski asked:


My husband and I own our home. We purchased it over 6 years ago. (It was a repossesion) Got a great deal. Even in the slow market we probably have $100,000 in equity. The draw back with the repossesion is it needs some TLC. We need new windows and siding. These items are big ticket items. Probably about 25,000 together. Our current interest rate on the mortgage is 6.25%. Should we get a second mortgage, a heloc or a line of credit to tap into this equity? We both work and have decent credit.

RANDOLPH