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Caron
Moderator
Joined: 19 Jul 2005
Posts: 1486
Location: florida
251.23 Dollars($)
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 Posted: Tue Dec 20, 2005 11:19 pm Post subject: costs of 2nd mortgages |
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A 2nd mortgage requires similar costs that are payable in a first mortgage. The closing costs range from 3% to 6% of the loan amount. Lenders charge an administrative fee of about $250 along with an appraisal fee that lies between $300 and $400 for a standard owner occupied single family residence. They also demand fee for obtaining and checking the credit reports. This credit fee ranges from $25 to $65. There are also the title and escrow fees that may be slightly less than that of the first mortgage.
Most lenders allow for a "Flag" title insurance policy in a second mortgage having loan amount of $200,000. This policy requires the payment of a flat fee of about $125. Often a "Sub-escrow" or "Mini-escrow" fee is also charged. This fee amounts to something between $225 to $250. Apart from all these costs, the lender also charges standard notary fee, recording fee and pay off fees lying between $60 and $150. |
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Dauglas
Guest
0.10 Dollars($)
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| Posted: Tue Dec 27, 2005 11:32 pm Post subject: Deducting second mortgage interest |
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I am currently seeking for a second mortgage on my home. I will use the money for home improvements and to clear some debts. I have very little equity built up as I have recently bought the house. Can I write off the interest on the second mortgage? The loan is a 125% loan.
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Jessica
Community Mentor
Joined: 08 Jun 2004
Posts: 743
Location: OHIO
139.64 Dollars($)
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| Posted: Tue Dec 27, 2005 11:45 pm Post subject: interest deduction on 2nd mortgages |
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Hi Dauglas,
Welcome to MortgageFit Forums.
Generally, you can claim a tax deduction on the interest that you are paying on your home mortgage. But you will have to acquire the property first and then borrow at least $100,000. You should also claim the interest on this loan as a qualified residence interest.
However for the interest to remain deductible there are certain limitations, for example, the secured loan balance cannot exceed the fair market value of the home. But a 125% loan is meant to exceed the fair market value of the home. And, lenders generally make such offers if you are willing to pay off the loan at higher interest rate and also if you have a good credit history.
You will be allowed for tax deduction on the interest on your 2nd mortgage but only if the sum of the first and second mortgages do not exceed your home value. Your home value is likely to increase if you go for home improvement. And, this will help to increase your liability to pay off the loan.
Regards,
Jessica |
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tanesha
Guest
0.10 Dollars($)
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| Posted: Thu May 11, 2006 6:46 pm Post subject: home loan to purchase another with bad credit |
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| I am single mother looking for a bigger home in a better neighbor hood. I have be in my current home for six years. I do own it. I however have bad credit and I belive the chances of my purchasing another home is next to impossible if someone has any information I would like their input Thanks |
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jerry
Moderator
Joined: 17 Oct 2005
Posts: 1173
Location: MICHIGAN
152.36 Dollars($)
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| Posted: Thu May 11, 2006 7:11 pm Post subject: RE: |
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Hi,
Welcome to the forums.
Nowadays lenders are willing to give loan to the borrowers who have low credit score. But the interest rate that you will be charged on the loan is surely going to very high.
MortgageFit has a large network of mortgage lenders. What you all need to do is sign up with them, so that their loan department can find the best lender suiting your needs.
But if you take my advice I would ideally want you to wait for some more time and work on improving you credit score by working out on some of the basics, like planning your monthly budget and meeting your bills on proper time.
Please feel free to ask if you have any more doubts. 
Thanks,
Jerry |
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Caron
Moderator
Joined: 19 Jul 2005
Posts: 1486
Location: florida
251.23 Dollars($)
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| Posted: Thu May 11, 2006 9:12 pm Post subject: |
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Hi Tanesha,
I agree with Jerry; it is always better to improve your credit profile before you think of taking a loan. Please go through our section on credit repair for some tips on how you can improve your credit score.
Thanks,
Caron. |
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Meredith
Guest
0.10 Dollars($)
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| Posted: Thu Jun 08, 2006 1:50 pm Post subject: second mortgage |
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| I owe 105,000 on our house bought two yrs. ago. I took a home equity line of credit to get the other 10% for down payment. The house was initially assessed for 157,000. We have done alot of improvements. Can I take a second loan to get rid of the high interest debt I have. |
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blue
Joined: 21 Oct 2005
Posts: 1138
Location: MARYLAND
137.66 Dollars($)
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| Posted: Thu Jun 08, 2006 2:13 pm Post subject: |
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Hi Meredith,
You can take a 2nd mortgage provided you have built enough equity on the home.
BTW, what rates do you have on the debts?
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jameshogg
Joined: 20 Dec 2005
Posts: 1773
Location: nevada
261.37 Dollars($)
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| Posted: Thu Jun 08, 2006 3:22 pm Post subject: |
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Hi Meredith,
I understand your concern. There are no limits in the number of mortgages that you can take provided you qualify and you must also check that your purpose is served.
You can opt for refinancing of the 2nd mortgage also. If you get lower rate in refinancing your HELOC to a fixed rate second mortgage then you can go for it. But check whether the difference will benefit you when you need to pay the pre-payment penalty, if there is any.
James |
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jojo
Guest
0.10 Dollars($)
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| Posted: Sun Jun 11, 2006 5:06 am Post subject: second mortgage |
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| we bought a house a year ago and we still owe about $280,000 and the value of the house is about $370,000 we want to consolidate all of our debt which will be around 80,000 can we still take a second mortgage of 80,000 and do you know how much monthly payment will i pay for the second mortgage |
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adonis
Joined: 22 Oct 2005
Posts: 1628
Location: ALASKA
165.42 Dollars($)
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| Posted: Sun Jun 11, 2006 7:55 am Post subject: RE |
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Hi, Jojo
Thats all depend on the amount of the loan and terms agreed. Basically it will be calculated on the interest as well.
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Procrastination is the enemy of your financial sucess |
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Woody
Guest
0.10 Dollars($)
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| Posted: Mon Jun 12, 2006 1:01 pm Post subject: 2nd Mortgage |
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| I bought my home about six month ago. I do not really have any equity built up yet. can I do a 2nd mortgage? |
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Samantha
Community Mentor
Joined: 16 Sep 2005
Posts: 1543
Location: MASSACHUSETTS
138.00 Dollars($)
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| Posted: Mon Jun 12, 2006 1:34 pm Post subject: 2nd Mortgage |
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Hi Woody,
Welcome to MortgageFit Forums.
You can get a home equity loan without any equity on your home with some lenders. For that you will have to pay significantly higher interest rates and closing costs. PMI will be required.
Home equity loans are cheap if you have already enough equity on your house. If you try to borrow before you have built some equity you will get it with a little shopping around but you need to pay higher costs and will get fewer perks.
God bless you.
For MortgageFit,
Samantha
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Remo
Guest
0.10 Dollars($)
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| Posted: Mon Apr 23, 2007 2:56 am Post subject: Should I go for second mortgage refinance? |
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| I have a mortgage and a second loan on the same property which is my primary residence. I have used the second mortgage to purchase a second home which I thought will be able to sell within a few months of time. But time is over and it has been over 6 months since I tried to sell the home. So, what I can think of is, either I go for the second mortgage refinance or rent the second home or short sale will be ok? Either of these would be better than foreclosure, isn't it? Pls help me decide which will be the right way. |
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