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Second Mortgage Refinance Article
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The Reasons for a Second Mortgage and Home Equity Loan
from:A second mortgage and home equity loan are the same idea. A home equity loan is a second mortgage. When you get a home equity loan you are getting another loan on your home. This means it is a second mortgage. It is being the first mortgage, which means if you default the second mortgage holder can not foreclose on your home because your home belongs to the first mortgage lender.
It can be confusing to understand everything involved with the idea of a second mortgage and home equity loan. However, it really is straightforward once you learn the basic concepts.
Why Are Second Mortgages Allowed?
It may seem odd that lenders would even give out a second mortgage or home equity loan seeing that they are limited in recovering the loan should a home owner default. However, a second mortgage and home equity loan are quite common.
Banks see loans on homes as a good investment. After all, most home owners are not going to take it lightly when their home is at risk. So, lenders know they can extend some trust to a home owner.
The risk of a second mortgage is lowered through higher interest rates and additional fees. The bank also has the option of buying out the first mortgage and then going ahead with a foreclosure, so they are not completely out of luck should you default.
Why Get a Second Mortgage?
You may wonder why you should even consider a second mortgage and home equity loan. The reason to consider one is that it is a great way to get use of the equity in your home without having to sell your home.
You have this great asset at your disposal but without a second mortgage you can not touch it. Until your first mortgage is paid off you can not get the equity out of your home very easily and you won’t be able to get it all.
With a second mortgage you will probably not be able to get all the equity, but you will be able to get quite a bit more than if you were to sell your home. You will also pay for the loan, but it can be less than if you were to go through the hassle of selling your home.
Getting a second mortgage and home equity loan just makes sense when you need some extra money. You can negotiate good terms with the lender and get money to better your financial situation, make an investment or improve your home. This is something worth looking into when you need some money right now.
Second Mortgage Refinance Specific links
Second Mortgage Refinance News
Realtors(R) Offer Support for Bill to Help Responsible Homeowners Refinance - MarketWatch (press release)
 CBS Moneywatch | Realtors(R) Offer Support for Bill to Help Responsible Homeowners Refinance MarketWatch (press release) WASHINGTON, DC, May 24, 2012 (MARKETWIRE via COMTEX) -- A proposed bill to streamline and align the refinance processes of Fannie Mae and Freddie Mac may soon make it easier for homeowners who are current on their mortgage payments but who have been ... Mortgage rates hit 4th straight record low Fixed mortgage rates hover at record lows Freddie Mac: Housing market showing recovery |
Don't HARP on it, refinance program too good to pass up - Cleveland Jewish News
 The Mortgage Reports | Don't HARP on it, refinance program too good to pass up Cleveland Jewish News This means that a hypothetical borrower with a home value of $250000, owing $300000 on a first mortgage and $50000 on a second mortgage, can refinance their first mortgage to today's historic low interest rates. What's the catch? Mortgage Origination Forecast Increased by Nearly $200 Billion by TSA Real estate industry pushes Senate on refi bill How 7 REITs Could See A Buying Frenzy Soon |
Mortgage applications up on refi demand: MBA - Reuters
 Mortgage Rates & Trends (blog) | Mortgage applications up on refi demand: MBA Reuters The MBA's seasonally adjusted index of refinancing applications gained 5.6 percent, but the gauge of loan requests for home purchases fell for the second week in a row and was down 3.0 percent. Mortgage rates fell as further uncertainty around the ... Refinance Applications Increase in U.S. for Third Consecutive Week, Driven by ... Mortgage comparison-shopping: How to read good faith estimate MBA Increases Estimate for 2012 Originations by Nearly $200 Billion |
MBA Weekly Survey: Refinance Applications Increase Because of Record Low ... - LoanSafe
 Eastern Morning Herald | MBA Weekly Survey: Refinance Applications Increase Because of Record Low ... LoanSafe “Mortgage rates again dipped to new record lows in the survey, which spurred more borrowers back into the refinance market. As a result, applications for refinance loans have increased for the third straight week and are at the highest level since ... Record-low mortgage rates spur refinancing Mortgage Rates Today: Wells Fargo, Citibank and KeyBank Refinance Rates for ... |
LendingTree Analysis Indicates Greater Savings with Adjustable-Rate Mortgages ... - MarketWatch (press release)
LendingTree Analysis Indicates Greater Savings with Adjustable-Rate Mortgages ... MarketWatch (press release) With Adjustable Rate Mortgages (ARM) representing only about 7% of new loan originations in the market, many consumers are seemingly unaware that these adjustable rate loans are worth a second look. As refinance volume has increased year over year, ... |