Is getting a second mortgage harder than the first since banks are afraid you can’t handle the payments?

sws asked:


Second mortgage on a second house, not a refi of the first. Thanks!

Donald

Tags: Mortgage Banks, Refi, Second Mortgage

This entry was posted on Tuesday, July 28th, 2009 at 3:08 pm and is filed under Mortgage. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

6 Responses to “Is getting a second mortgage harder than the first since banks are afraid you can’t handle the payments?”

1. Insurance Biz CT Says:
   July 31st, 2009 at 3:42 am

   Milton

   Depends on the purpose of the purchase - rental income or second home, and your income to pay it back. If you have a mortgage and pay it ontime, they may be more inclined to give you another one, provided you can show proof you can pay for it.

2. george 2 Says:
   August 1st, 2009 at 1:23 pm

   Stanley

   if you have some equity in the house why not just refinance your first mortgage and take you extra money instead of a second? you will have a lower interest rate and only 1 bill to pay.

3. Ron B Says:
   August 1st, 2009 at 11:44 pm

   Marc

   No, it is not harder. As long as you have equity in the home, a second is no harder to qualify for than a first. If on the other hand you are pushing the value of the home, it will be scrutinized more and you will pay a higher interest rate. Most lenders do not like to do seconds without refinancing the first because they don’t make a lot of money on them. If you go to a good mortgage broker, they will be able to get one done without to many hassles.

4. triad_historic_homes Says:
   August 4th, 2009 at 6:20 pm

   Juan

   Agreeing with CT (since the other two didn’t read the question), a mortgage on a second home is a little more difficult, in that loans for houses that are not your primary residence usually charge a higher interest, if you can show you have the income to make the payments, most lenders will gladly give you the money. In addition to the higher rate, many lenders will also require a down payment on a second home.

5. Heather P Says:
   August 6th, 2009 at 9:26 pm

   Jamie

   it is a little harder. banks consider 2nd mortgages and 2nd homes a higher risk. However, you should be able to find financing.

6. celia s Says:
   August 7th, 2009 at 1:11 pm

   Tracy

   No, it is not harder but most lenders do not like to do seconds mortgages without refinancing the first because they don’t make a lot of money on them. If you go to a good mortgage broker(my friend) He will be able to get one done without to many hassles.