This topic contains 7 replies, has 6 voices, and was last updated by Anonymous 7 years, 10 months ago.
- May 5, 2011 at 7:25 pm #206050
Is the higher rate of interest charged by the lender the only reason for them to do a second mortgage?Why would the lenders lend more money than the property is appraised for?
- May 6, 2011 at 9:16 am #260422
They are basically the same thing.
A home equity loan is a second mortgage. It is tied to the house and is a debt.
There are two types of second mortgages:
Home Equity Line of Credit
Closed End Second
The difference is that the HELOC is an adjustable rate associated with the PRIME rate, set by the Federal Reserve.
The closed end second is a fixed rate, it will never change.
Hope that helps.
- May 6, 2011 at 11:35 pm #263819
I have come across a website ie
The articles and links therein are useful.
- May 10, 2011 at 2:18 am #269962
A second mortgage is a home equity mortgage. It does have a higher APR and usually changes when the prime changes. However, you can also get one that has a locked interest rate. Alot of times people get a 2nd mortgage as an interest only, which is only a good idea, if you intend to sell the home within a few years or refinance.
- May 10, 2011 at 3:34 am #270263
A second mortgage is a secured loan (or mortgage) that is subordinate to another loan against the same property. More specifically, the second loan in sequence.
In real estate, a property can have multiple loans against it. The loan which is registered with county or city registry first is called the first mortgage. The loan registered second is called the second mortgage. A property can have a third or even fourth mortgage, but those are rarer.
Second mortgages are called subordinate because, if the loan goes into default, the first mortgage gets paid off first before the second mortgage gets any money. Thus, second mortgages are riskier for the lender, who generally charges a higher interest rate.
- June 10, 2011 at 2:24 am #432361
None….no firm can remove accurate negative info…..Save you money and pay down balances of what you owe with the money you save…. The only thing these firms can do is request validation and hope that the credit bureaus can’t validate…which means they must remove the items from your credit files. You don’t have to pay anyone to do this.
Per the Fair Credit Reporting Act you have the right to request written validation of negative entries on your credit files. Per this law they must validate the item(s) within 30 days or remove them from your credit file. Mail a letter via certified mail with return receipt to all three credit bureaus (Equifax, TransUnion & Experian). Include a photocopy of your driver’s license and social security card…If you don’t include these, they may write back requesting them, which would slow the process down by several weeks. For each negative item, write a separate letter and simply include the phrase:
Per the Fair Credit Reporting Act, I am requesting written validation of this item.
Do this one at a time for each negative entry….DO NOT request validation for all items at one time.
There is NO guarantee that this will work….It may give some decent results. The worst that can happen is that all negative items come back verified.
- June 10, 2011 at 2:24 am #432362
just wait a few years. it will get better
- June 10, 2011 at 2:24 am #432363
Before you waste money signing up with any credit repair company, read what the FTC has to say:
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