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Second Mortgages
There are many different types of second mortgages available:
- A reverse mortgage is a line of credit available for homeowners of 62 years
and older. This type of loan allows you to draw money as you need or receive
monthly payments for the rest of your life or until you move, even if the
amount of your loan exceeds the value of your house (usually because the home
did not rise in value as expected or the homeowner lived longer than was expected).
This loan, like the home equity line of credit, has an adjustable rate, but
this rate is based on a different index, the Prime Rate which can often be
more reliable than other indexes.
- If you have little or no equity in your home, many lenders will still allow
you to obtain a second mortgage, but it can be risky to secure a loan with
your home if there is not enough equity accrued.
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Bad Credit Refinance
There are many reasons to look into refinancing, especially if you have bad
credit or if you are currently being harassed by creditors. If you:
- Are in need of debt consolidation
- Have a high interest loan
- Have an adjustable rate mortgage
- Would like to invest in home improvement or repair
- Need to pay for college tuition
- Have significantly repaired your credit report and would like to pay off
an old bad credit loan.
- Want to make a major purchase but do not have the funds
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Home Equity
The reverse mortgage is also an adjustable rate mortgage, but is unique because the homeowner (who must be 62 years or older) is at no time obligated to make monthly payments on the loan. The amount of the equity on the home is made available to the owner in full, in monthly advances or as a line of credit, only to be repaid after the life of the owner through the sale of the home or by the family if they would like to keep the home.
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Land Loan
Usually, the homebuyer places a down payment on the lot and uses a line of credit to finance the construction of the home. As construction moves along, the buyer borrows from the line of credit to finance the building. Once the construction is finished, the land loan and the line of credit are rolled into a single mortgage to be paid by the homeowner.
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Mortgage Calculation
Mortgage calculation can also help you plan whether or not you would like to include extra payments in your repayment schedule. On the loan of $150,000 at 7% interest with a 30 year term and a monthly payment of $997, one extra yearly payment can save a homeowner nearly $50,000 in interest payments. If this loan had a 15 year term, the difference that of extra yearly payment would be far less impressive, saving just over $9,500. If you are interested in making an extra yearly payment and feel you it will not put too much strain on your finances, it is a good idea to discuss this with your lender. Extra payments can cause you to finish paying your balance before the scheduled end of the repayment period and some lenders have prepayment fees, so you should check to make sure there are no such penalties or include these extra payments in your repayment schedule.
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Mortgages Online
Points equal up to 1% of your loan and are paid at the beginning of your loan. The more points paid, generally the lower the interest rate.
Find out more about the mortgage that would be perfect for you and your home. Apply online to contact up to four lenders.
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Reverse Mortgage
A reverse mortgage is unlike most other loans in that it does not require that an applicant meet certain credit and income criteria or start immediate monthly repayment schedules. Instead, a homeowner qualifies on the bases of the value of the home, as long as he or she is 62 years of age or older. If you are interested in a loan with no monthly payments, fill out our short form today.
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