Weighing the Risks of 2nd Mortgages [mortgagecalculator-tips.blogspot.com]
Settle your 2nd mortgage second or HELOC home equity line of credit. This a type of loan modification or loan mod many people over look. I have seen many many many lenders take 1-5% of the loan balance as settlement. If you have a 2nd or heloc you need to watch this video. 800-632-5160 kevin@kevinmcgill.com
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Many home owners who find themselves in financial crisis consider 2nd mortgages to attain immediate funding. 2nd mortgages are a refinancing alternative. Obtaining a second loan is a way to restructure and consolidate debt. The borrower should always carefully consider all options before committing to a second loan.
2nd mortgages allow the borrower to access the home's additional equity. The property secured by the primary mortgage also secures the second mortgage. In the event of a default any lender can place the property in power of sale. However, 2nd mortgages are considered a higher risk for lenders than those of first mortgages. Therefore when and if a default occurs, the first mortgage takes precedent over the second mortgage. This typically results in higher interest rates on a second mortgage. Although 2nd mortgages are considered to be more of a risk than first time loans, the risk is still less than those of credit cards.
In turn the interest rates are also typically lower than the interest rates on credit cards.There are some disadvantages when obtaining 2nd mortgages. The main disadvantage is that the borrower is putting their home at risk by attaining one. If the borrower becomes unable to make payments, a second mortgage can be catastrophic. 2nd mortgages also usually have hefty second mortgages fees. These fees often depend on how much funding the borrower wants to access and how long it will take to pay off the loan. For this reason it is imperative that the borrower understands and weighs all risks, before committing to a final contract agreement. By ensuring that the payment on the second mortgage will still be affordable even with higher rates, borrowers will greatly reduce the concern for default and the consequences that follow.
This will also give the borrower's budget adequate room for small changes in income.When a home owner is looking to attain a second mortgage, the best place to start is with the lender of the first. By doing this, it is likely that the borrower can save money on fees and interest rates. The lender is able to look at past payment history of the primary loan. If the borrower has made payments each month and in a timely manner, this shows that the borrower is less of a risk and the lender may reduce some of the fees. In attaining 2nd mortgages, getting all necessary information to make an informed decision is the best approach.
Question by : Do mortgage lenders look at your income W-2 forms for the income reported instead of check stubs? My question is do mortgage lenders look at your w-2 forms to find out how much money you made instead of asking for check stubs? I know you at least need the past 2 w-2 forms i'm i correct? Best answer for Do mortgage lenders look at your income W-2 forms for the income reported instead of check stubs?:
Answer by Anthony
5 years ago all they wanted to see is if you had a job but then the bubble bursted. Now you need every single paper you can think of. Check stubs, W-2, Taxes everything.
Answer by Glenn S
They compare the two. Most of the time overtime is not used to qualify for a loan.....only if it shows that the overtime has been consistent over a year or longer. Lenders normally will only use the base salary to qualify you for a loan. They might even ask the employer to write a letter stating that they expect that any overtime will continue for at least a year. W-2's only show income for the previous year. Pay stubs show your current monthly income.
