Second mortgages are great for debt consolidation and withdrawals
With the refinance boom officially over, second mortgages are cooler than ever. Many homeowners have been blessed with low interest first mortgages that they want to keep. The need for cash didn’t go away with the refinancing boom, so second mortgages and home equity loans will be the preferred loans for the next few years. Anyone with a 30-year fixed rate loan below 6% should keep their existing loan in tact and take out a second home loan if they need the money. The Federal Reserve has hinted that more interest rate hikes are on the way, so if you’re a mortgage broker or lender, it’s time to refresh your second line of mortgage products because people still need access to money and there’s no better way to get it this.
Home equity loans up to 125%
You don’t need equity and this loan program will actually allow you to increase the value of your home by up to 125%! These 2nd mortgages are usually offered at a fixed rate for 15, 20 or 25 year repayment terms. If you have credit card debt or high interest loans, this is an excellent loan to eliminate interest accrual and save money! IHE Executive Director Sandy Sarconi said, “There’s no better way for a hard-working family with no equity in their home to lower their bill payments and get out of debt.”
* Second fixed rate mortgage
* There is never mortgage insurance
* Second mortgage without equity
Specified income Second mortgages
More and more people are looking for discounted document loans. More and more people are becoming self-employed and many people just like the streamlined process.
* Loans with declared income
* No income no assets 2nd mortgages
* No confirmed income equity
* No capital refinancing document
Second mortgage lines of credit
Of course, interest rates are variable. Yes, the Federal Reserve has raised the prime rate eight times over the past few years, but people love the low payments that interest-only loans provide. People also like the flexibility of only paying interest on the money you have access to. Where else can you get cash waiting for you without having to make payments until you use spend cash!
* Interest payments only
* Home credit lines
In 2006, the often shy second mortgage emerged from the shadow of the first mortgage and became the cool loan of choice.
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