With the refinance boom officially over, second mortgages are cooler than ever. Many homeowners have been lucky enough to have low interest first mortgages that they want to keep. The need for cash has not gone away with the refinancing boom, so second mortgages and home equity loans will be the loans of choice for the next few years. Anyone with a 30-year fixed rate loan at less than 6% should keep their existing loan intact and take out a second loan on their home if they need cash. The Federal Reserve has hinted that there are more rate hikes coming, so if you’re a mortgage broker or lender, it’s time to review your second line of mortgage products, because people always need to access cash, and there’s no better way to do it.
Home equity loans at 125%
You don’t need any equity, and this loan program will actually exceed the value of your home by up to 125%! These 2nd mortgages are generally offered with a fixed interest rate for repayment terms of 15, 20 or 25 years. If you have credit card debt or high interest loans, this is a great loan to eliminate compound interest and save money! IHE Director Sandy Sarconi said: “There’s no better way for a hard-working family with no equity in their home to cut their bill payments and get out of debt.”
*Second mortgage with fixed interest rate
* No mortgage insurance ever
* No second mortgage
Stated Income Second Mortgages
More and more people are looking for discounted documentation loans. More and more people have become self-employed, and many people just like the streamlined process.
* Stated Income Equity Loans
* No income No assets 2nd mortgages
* Home equity without verified income
* No Doc Equity refinancing
Second mortgage lines of credit
Of course, interest rates are variable. Yes, the Fed has raised the prime rate index eight times over the past few years, but people like the low payouts that interest-only loans provide. People also appreciate the flexibility of only having to pay interest on the money you access. Where else can you get money waiting for you without having to make payments until you spend money!
* Interest only payments
* Home lines of credit
In 2006, the oft-timid second mortgage emerged from the shadow of the first mortgage and became the cool loan of choice.
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