Second Mortgage Shop

Not credit counseling, but debt consolidation loan. Can’t find any good info on the web, so your educated opinion would be helpful. What are credit requirements, home equity requirement, debt service ratio and other factors?

If you know a good resource that would be very helpful as well!!

Thanks.

I get this question all the time as a senior loan officer for a large mortgage brokerage firm. Credit requirements are a little tighter now, but there are still lender who will offer to consolidate your debt if you have the following:

1. Credit score of 680 or higher.
2. Debt to income ratio of 45% or lower (if CR score is higher, then ratio can be higher)
3. Home loan to value can be as high as 95%

for more information go to my website: www.windsorcap.com/rlicon

My husband and I have two mortgages (an 80% and a 10%). Our banker uses the term for the "second mortgage" interchangeably with a "home equity loan". Is it possible for us to take out a home equity line of credit at the same time we are paying the second mortgage?

If you are a first time borrower of a home equity loan it is imperative that you have a checklist of essential questions that you need to ask each and every lender. The answers to these questions will provide a valuable reference to base your comparisons on. What’s the interest rate? Knowing this is crucial. The interest rate will determine<!–the monthly payment you will need to make. You also need to know if the interest rate is of a fixed or adjustable nature. Fixed rate implies that the monthly payments will remain constant, while an adjustable rate implies that rates will fluctuate depending on market conditions.

http://best-loans.awardspace.com/homeloans.htm

In adjustable rate, when will rates change? If your interest rate on the home equity loan is of the adjustable variety, you need to know three things: when the rate is going to change (that is under what conditions), how frequently will the rate change and what’s the average–>percentage by which the adjustable rate will change. What is the Annual Percentage Rate or APR? The APR on the home equity loan will determine the yearly payment you will need to make towards this.The higher the payment in terms of points, the lower is the interest rate.

I want to refinance and include my home equity loan and get extra money for a new car. What is the right option?

Refinancing reduces your current payments and you often can get money.

Debt consolidation is combining loans together.

So, refinancing is what you want.

Whats the difference between a loan and a line of credit?
Do you think its ok to search for the lender on the internet or should I go to my bank who refused it 2 yrs ago even though my FICO score was over 700? Its 760 now.
Do most people get quotes for the work they need or do they just borrow over and beyond what they think they need?
What are they going to ask me for when I apply for the equity line of credit?

#1 - A loan is a one time amount of money lent to you. Once it's paid off, it's done. A line of credit is a revolving credit amount where once ou pay the amount owed of, you can use the credit again (just like a credit card).

#2 - It is best to either search online or find a mortgage/loan broker. A broker has far more access to different companies that might have different lending requirements so if you were declined by one place, they will be able to shop it to another.

#3 - If you get a loan, it might be required or at least a good idea to get a quote for the work that is being done. There's no point in borrowing money and paying interest on it, just for the sake of having some extra cash around. If you are taking a line of credit, don't worry about the reciepts…you are only charged interest on the amount that you spend on it, not the amount available.

#4 - They will ask you more or less the same questions whether it's line of credit or a loan, however, they are alittle more strict with lines of credit, becuase you need to be responsible for a longer period of time instead of just the duration of one loan term.

We filed bankruptcy a year ago. We left out the first mortgage but included the second mortgage (home equity line of credit). It has been discharged, no one contested it and we haven’t received a statement or any other communication from them since. We want to sell the house now to our daughter. Does that 2nd mortgage company still have a claim to the property?

I assume that the home equity line of credit was secured by a Mortgage or a Deed of Trust. If that is the case, you have been discharged of this debt personally, but the second mortgage is still attached to the property and this loan will need to be paid off in full before the property can be sold to someone else with a clean title. The mortgage company typically will not contact you after a Bankruptcy, since they cannot require you to personally pay the loan. They do still retain the right to foreclose on the property, but in some cases they are not interested in spending the money to do that. The total payment due on the loan will include late fees and interest accrued since the last payment due on the loan. I would suggest first having a title report run to see if the loan still shows up on title (probably will). If it does, you may want to contact the bank to see how much they say is owed. You may be able to negotiate on the back interest and late fees.