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With the refinance boom officially over, second mortgages are cooler than ever. Many homeowners have been blessed with low interest first mortgage loans that they would like to keep. The need for cash hasn’t 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 of less than 6% should keep their existing loan in tact and take out a second loan on their home if they need cash. The Fed has hinted that there are more rate increases to come, so if you’re a mortgage broker or lender, it’s time to brush up on your second mortgage product line, because people still need access to cash, and there’s no better way to get this done.
Home equity loans up to 125%
You don’t need any equity, and this loan program will actually allow you to max out the value on your home up to 125%! These second mortgages are usually offered at a fixed interest rate for 15, 20 or 25 years to pay back. If you have credit card debt, or high interest loans, this is an excellent loan to get rid of compound interest and save money! IHE Executive Director Sandy Sarcone stated, “There is no better way for a hard-working family who doesn’t have equity in their home to cut down on bill payments and get out of debt.”
* Fixed rate second mortgage
* No mortgage insurance whatsoever
* There is no second mortgage
Declared income mortgages
More and more people are looking for discount documentation loans. More and more people are becoming self-employed, and many people simply love the streamlined process.
* Equity loans with declared income
* No Income No Assets Second Mortgages
*Home equity with no verified income
* No Equity Refinancing Doc
Second mortgage lines of credit
Make sure interest rates are variable. Yes, the Fed has raised the benchmark interest rate eight times in the past few years, but people love the low payments that interest-only loans provide. People also like the flexibility of only having to pay interest on the money that comes into play. Where else can you have money waiting for you without having to make payments until you use the cash!
* Interest payments only
Major lines of credit
In 2006 the often shy second mortgage emerged from the shadow of the first mortgage, evolving into the fabulous loan favorite.
