Second Mortgage Rates

Hazel Said:

Can anyone suggest a good mortgage company that works nationwide?

We Answered:

Countrywide for sure, but don't expect a low rate on investment property with a 653 fico.

Gary Said:

what are the mortgage rates for second mortgages?

We Answered:

They vary but are usually higher than the first. I'd say somewhere around 10% to 12% is a good ballpark. Of course credit history has something to do with this as well.

Carlos Said:

When is interest rate set on a second mortgage?

We Answered:

Technically, you can benefit from a decrease in rate if you have not locked in your loan. The likelihood of that happening is slim to none. This solely depends on the pricing offered by the lender.
Since your rate is not locked in, it's floating and will be marked to market. Since the market isn't doing so well - irregardless of the Fed cutting rates - your loan's rate will default to the lender's pricing. Just today alone, several guideline changes have been implemented making it tougher to qualify for 2nd liens, and as of Friday, there were intraday rate changes that worsened pricing on rates being floated.

Susan Said:

Can we refinance our second mortgage?

We Answered:

most likely you wont be able to just do the second you will have to do the first as well combining them together. You should have done better research though. If you have good credit and a good history of paying on time then you could have been elidgable for programs that have no PMI up to 90%. My company has these if you are interested email me. cheeba0228@yahoo.com

Kyle Said:

Why is the interest rates on Home Equity line of credit higher than second mortgage loans?

We Answered:

I'm not exactly sure what you mean here, but I don't think it's entirely accurate.

A Home Equity Line of Credit(HELOC) is based upon the prime rate(an index) which in turn is based upon the over night Fed Funds rate. The Fed Funds rate adjusts monthly according to the Federal Reserve's meetings (Greenspan in the past).

HELOC's as 2nd mortgages are higher than some 2nd mortgage loans right now because the index that derives their rate(Fed Funds & Prime) is higher than several fixed 2nd mortgage indicies.

Typically, the payment for HELOC's is interest only. To see what your payment is here's a link to a mortgage calulatore on my real estate site: http://www.nnnstore.com/mortgagecalculat…

The typical loan term is 30 years. To find out what your interest only payment is put in a loan term of 2400 years.

For years though, HELOC's were even less than first mortgages with interest rates as low in the 4's.

2nd mortgages tend to be at a higher interest rate than 1st mortgages, typically. The reason is because in the event of foreclosure there is an order for paying off liens, known as position. 1st mortgages would be paid off fully first because they are in a higher position than a second mortgage.

Diana Said:

Mortgage rates for second home?

We Answered:

No, at the time you are ready to buy a larger home it will be your primary home not a second home so you will get the same rate as anyone else who is buying a home as their primary residence.

Constance Said:

what is the required minimum down payment for a second mortgage?

We Answered:

There are many programs out there for second homes, investment properties, and etc. There is even 100% financing available with your credit score. You still have to pay your own closing costs however. Find a local loan officer in your neighborhood. Not anything online, but an actual person that you can sit down with. The higher the loan to value the higher the rate is going to be.

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