I bought a house about 6 months ago, is it possible to get a second mortgage or do I have to have a certain amount of equity first?
You need a certain amount of equity, if you know there is no equity in the place don't bother trying to get a 2nd.
Can I get a second mortgage on a house I just bought?
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June 8th, 2007 at 8:05 am
don't get a second mortgage right off the bat. save your money for what you need.
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June 8th, 2007 at 8:05 am
You need a certain amount of equity, if you know there is no equity in the place don't bother trying to get a 2nd.
References :
June 8th, 2007 at 8:06 am
Did you finance 100%… or did you have money to put down? Most mortage companies/brokers will only finance 100% of the purchase price or the appraised value (after you have lived there for a year). There are a few companies that will lend 125% of the value, you just need to call around… Good luck!
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June 8th, 2007 at 8:07 am
you could get a second mortgage if there is equity in the home. If you bought it for 100% financing then probably not since appreciation would not be much in 6 months. Although if you bought it for under market value you could do a second mortgage. There is always a 125% equity loan but the rates are usually pretty high on those, around 13% or so.
References :
http://www.mkemortgage.net/content/125__home_equity_loans_681.htm
June 8th, 2007 at 8:47 am
2nd mortgages are strongly based upon your loan to value (LTV). You can get a 2nd of up to 125% (even more) of the value of the home but there are 2 things to consider if you go with such an extreme LTV: 1) income tax-wise, you can only deduct the interest paid up to 100% of the value of the home so all the excess is just money spent; and 2) the interest rate on those loans WILL be in the teens…maybe as high as 17% - that's no lie. I do not recommend such loans as you will be in an upside-down home loan - like an auto loan.
References :
I am a mortgage broker and a realtor