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Andrew Said:

If I purchase a home in all cash would I get a mortgage or home equity loan?

We Answered:

If you purchased the house with all cash and shortly thereafter refinanced the property it would be a first mortgage.

The mortgage are determined as to which mortgage is recorded first no matter what they are called.

Why would you purchase an investment property with all cash, and shortly refinance it. Qualify for and get the mortgage, keep the cash for other things. The only way this make sense to an investor is that time prevents you from getting a loan.

There are tax benefits to obtaining a mortgage loan. You should check with your tax consultant prior to making this transaction.

Most investors would not purchase a property and pay all cash with their own money for an investment property, it goes against the grain of being an investor. Being an investor you should try and get into a property with as little as possible and still make a profit so as the tenants rent can cover the mortgage monthly payment, taxes and insurance as well as a little left for maintenance. Investors would not tie their money up this way.

The next thing is that if you get mortgage loan as a non owner occupied home the interest rate is higher.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Alvin Said:

Is a home equity mortgage the same as a second mortgage?

We Answered:

Yes, a home equity loan IS a 2nd mortgage.

Some people however, consider a "2nd mortgage" to be a closed-end fixed rate lump sum loan. While a "line of credit" is revolving and can be used over and over again.

But both loans are actually 2nd mortgages because they are in 2nd lien position to the 1st mortgage on title.

Julie Said:

Can you pay off a home mortgage with a home equity line of credit?

We Answered:

If her home mortgage rate was higher than her line of credit it makes sense. I do not have a home mortgage but I do have a line of credit on my home.

Normally you can just make interest payments on a equity line if you want. My heloc is locked for 5 years with minimum payment being the monthly interest.

Normally people do borrow on their home to pay off their home when they refinance.

Danielle Said:

I am trying to modify my mortgage, Is it possible to apply for a modification on my Home Equity line as well?

We Answered:

You can... but why??

Equity lines have floating rates.. not fixed...

Tom Said:

How should I go about selling my current home that I have a mortgage and home equity loan on and go about.....

We Answered:

In a nutshell, you need to put your house up for sale and include the home equity loan amount as part of sale price for house- Say you owe 100000 on your current home and have a 30000 H.E.loan. The minimum that you could afford to get for your house is 130,000. Now a reputable real estate agent will be able to advise you on what your home is WORTH. The worth may be more or less than what you need to get out of it. The housing market is in a decline right now and even if your house is worth more than 130,00 (if that was what you needed) you may not get anytakers at that price. An agent will help you figure out what amount and where you can get financing for a new home. I recntly went thru this myself. I could get what I wanted for my home but not find another home equal or better than mine for a comparible price where I wanted to move to. I decided not to take the job I had been offered because I simply could not afford it. I think if you are very determined to do this though that it is possible. The biggest thing you could do is find a fabulous real estate agent who is willing to spend the time working with you to point out all the great features . Many real estate companies offer online adverstising and I highly encourage you to do this as- it is free or very cheap and many, many more people will see your house. If you do this make sure you take really good, clear pictures and include LOTS of them. You can even do a video tour to post online at some agencies. Some agents want to take the pictures and they usaully do not do as much or as well as you would. I have a friend who is an agent in KY and she said it is because they just don't have time to take and post a whole lot of pictures. This is a lame excuse. It does not take long to post pics if you know what you are doing. Make sure your agent is internet savy. Those that are will usually brag about it. Staging your house may be something worthwhile too. You know- have a professional stager come in and tell you what to remove and soemtimes rearrrange, add etc. This can help you sell your house much faster and for more. People looking for a home have a hard time piucturing their stuff in your house when all of your stuff is still present. One other tip- please DO NOT GET AN ADJUSTABLE RATE MORTAGE!!!! So many people are losing their homes due to increases in interest . I assume you know this but I had to say it. Good luck to you. I applaud you for trying to do this to make things better for your kid.

Leo Said:

What is the difference between a 1st mortgage, 2nd mortgage, and home equity loan?

We Answered:

The # denotes seniority/position in chain of title. A first mortgage is a loan secured by the property that is in 1st position and gets paid what is due them first if the property is sold (municipal liens like property taxes are TRULY first, though).

A second mortgage is a loan that has a "junior" position behind a first mortgage. Home equity loan is just a colloquial term generally applied to second mortgages. A HELOC, or Home Equity Line of Credit (as mentioned by another responder) is a TYPE of home equity loan that acts more like a credit card in that you can draw on the equity as needed and pay it back and draw on it again and again during the "loan" term.

Technically you can have 3rd, 4th, 5th, etc. mortgages and any of those could be a "home equity" loan in that they would be loans secured by remaining equity in the property, but that would be highly unusual on a residential property.