Bookmarks
Archive
« Can I use a second mortgage to finance a new mortgage in California?
Is it possible to mortgage a house for more than it is worth if the owner of the second mortgage doesn’t agree »

 

ok can anyone help me figure this out for a friend?On a second mortgage?

Natazha T asked:


Ok my friend owes 80,000 dollars left on his first mortgage and has bills up to 40,000 .Good credit pays on time but he wants to take a second mortgage of around 125,000 pay the same house and the bills and have one mortgage .Pay more Yes and maybe financed for another 15 years ok but how do we do that .Can you even do that?And if you can what do you do?

Gail

Tags: ,

This entry was posted on Wednesday, July 15th, 2009 at 2:25 am 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.

3 Responses to “ok can anyone help me figure this out for a friend?On a second mortgage?”

  1. David M Says:
    July 16th, 2009 at 11:49 am

    Ella

    What’s the home worth? Can your friend make the payments on the new debt?

  2. Steve D Says:
    July 19th, 2009 at 2:58 am

    Joe

    Assuming the house appraises at $125,000 or more, he just needs to call his bank about re-financing and taking out cash. If his bank says no, check the yellow pages or internet for a mortgage broker in your area.

    The only trick will be the appraisal has to come in above what your friend wants to borrow and also above the percent of value the lender will allow (a $125,000 appraisal would put equity at 0% and many banks today are much tougher with 100% loans.

    Your friend will probably also have to pay closing costs for re-recording the title, etc.

  3. STEVEN F Says:
    July 21st, 2009 at 4:44 pm

    Philip

    1. What you describe is NOT a second mortgage. The correct term is ‘cash out refinance’.
    2. Without knowing the CURRENT home value AND his income, we can’t even guess if he would be approved.
    3. You would do this the same way you would do ANY refinance. Contact a mortgage lender and tell them what you want to do.

    Steven D: He will NOT be approved for a 100% refinance. At this time, they simply don’t exist. The banks own too many homes specifically because they made such loans.

Search
Categories