Equity Home Loans

Cash-Out Refinance or Second Mortgage? If Second Mortgage...home equity loan or HELOC? My 2-family home is valued at 375K. I have 12 years and 88K on it left. My current loan is at a 4.9 interest rate. I need to borrow 220K and need it in lump sum. With todays rates being around 6.5 for a 30 year, I know refinancing is out of the question. Which would be better for me, a HEL or a HELOC? What would my payments be for 30 years, 15 years? Thanks

Why is the interest rates on Home Equity line of credit higher than second mortgage loans?

Which would be the best option Equity Loan or second Mortgage? We are in need of a mojor bathroom remodel very soon or we risk not having a functioning shower soon. We currently have over 3x our loan due amount in equity, but our credit rating is not the best. What I would like to do is take out the loan for the remodel (including materials for other areas of the home we can do ourselves) for a fixed 15-30 year repayment so our curretn payments will be low enough to not hurt us until we sell in 5 years when we will have paid the 1st mortgage in full and we will repay the 2nd loan in full from the sale profits. Which would be the best way to go for our needs, timeline, and credit rating to make the most of it and get the best rates possible? Thank you

Is this a good time to get a Home Equity Loan? I have an adjustable rate loan for my second mortgage, and I want to transfer that balance into a fixed loan with a lower interest rate - and 8-9% would be lower than my current rate. Is this the best way to go?

Whats the best and quikest way to pay off high rate second loan on first home purchase? I just purchased purchased my first home for $181,900. I put 10% as a down payment$18,400 plus $500 ernest money. I had only 10K on hand a had to borrow the other 8K from another lender. My question with the 10% down payment does that give me some kind of equity if so when can I refi to get some cash to pay off the high interest 8K loan. Or could I get another loan at a lower rate and pay off the higher rate loan. I need some advice on the best way to go about this. Because we can handle the mortgage and the loan but want to get out of it as soon as possible. All serious suggestions are appreciated

Should I stay away from a second mortgage interest only loan? I've been approved for a 1st mortgage at a fixed rate of 7.38 and a 2n mortgage interest only at 10.425. This loan is for an investment property. I've been told that the 2nd loan is Home equity line of credit. How much will my payments go up on the 2nd mortgage and should I look for another loan. Thank You.

Should I get a Home Equity Line of Credit or a second mortgage? Our home was paid off as a wedding present from my FIL, which is great, but the house still needs major improvements. We need to do quite a bit of work to improve our current living conditions. We debated selling, but since I've decided to stay at home full time with my son, we can't afford the expense of a new mortgage at this time without ending up in the poor house. We were thinking of either getting a home equity line of credit or opening a second mortgage on our home to pay off our small credit card balance and car then using the rest for our home improvements. This is what seems to be the better financial option for us at this time as we will only be paying ONE debt down at a lower interest rate. I just don't know which is the better option for us. We plan on moving in about three years and the improvements we make will add value to our home, or at least pay off the loan/credit we plan on getting. Any advice? Thanks! Sorry, I wasn't totally clear on what info I need and I can't edit it. Which is better, a HELOC or second mortgage? We have to do one or the other because we can't live here for three years with a child in a fixer upper. Thank you for the great replies so quickly! When we pay off the credit card, we're lowering the credit limit to almost the bare minimum or maybe canceling it all together as I do NOT want to get into the trap mentioned of running up the debt again! Thanks again! :)

Why does yahoo pirate its way into my companies domain name "aapexmrtg" to advertise its website "answer.yahoo I pay-for-click with yahoo, as if that is not enough, yahoo is using my domain search to advertise its websites, and aloud others to do so as well. Proof of keyword search, "aapexmrtg" and result is listed bellow. Yahoo! Answers - what is a REVERSE MORTGAGE and how does it work? ... Aapex Mortgage - No money down... www.aapexmrtg.com ...answers.yahoo.com/question/?qid=1006060124154 - 32k - Cached - More from this site - Save Find Today's Rates on Mortgages, Refinance Loans, Home Equity Loans, and Mortgage Calculators on Yahoo! Real Estate ... No money down and 100% financing for first and second homes. www.aapexmrtg.com. Mortgage Loans Information Center ...realestate.yahoo.com/loans/?sc=va&full=Virginia - 28k - Cached - More from this site - Save Yahoo! Answers - is rajarhat in calcutta a good place to invest in property ? ... Aapex Mortgage - No money down... www.aapexmrtg.com ...answers.yahoo.com/question/?qid=1006050601108 - 28k - Cached - More from this site -

Home Equity Loans? My husband and I own our home. We purchased it over 6 years ago. (It was a repossesion) Got a great deal. Even in the slow market we probably have $100,000 in equity. The draw back with the repossesion is it needs some TLC. We need new windows and siding. These items are big ticket items. Probably about 25,000 together. Our current interest rate on the mortgage is 6.25%. Should we get a second mortgage, a heloc or a line of credit to tap into this equity? We both work and have decent credit.

where on a mortgage note does it specify whether or not a loan is considered recourse or non-recourse? I bought a home 4 years ago and am now having trouble paying my mortgage. I have a first and second TD, the first was refinanced once as a rate/term refi, and the second, an equity loan with wells fargo, was partially used to cash-out. I have to consider foreclosure as an option, if the lender is not willing to modify the terms, but I'm unsure if either the 1st or 2nd lienholder can pursue any of my other assets, including a property my wife owns free and clear that was gifted from her grandmother, a pretty decent size 401K (over 100,000), or possibly even garnishment of my wages. Credit and Tax issues aside, is there any way the lender will seek repayment through the court system, or will foreclosure pretty much protect me? BTW this house is considered my primary residence. I am also trying to find where on the note/deed of trust that I signed, it states whether or not the liens are considered recourse or non-recourse, but cannot seem to find the pertaining verbiage

Is it better to get a conforming loan plus 2nd trust or to get one "mini jumbo" loan? We are getting ready to purchase a home and will be borrowing $480k. We have called around to various lenders and have received conflicting advice. Is it better to: 1) get a conforming loan for the first $417 (today's rate of 5.875%) and then get a second trust for the remaining $63k. And then for the second trust, should we do a home equity line of credit (only 5% now but could rise as economy improves) or an amortized second home loan at 7.5% OR 2) just get one mortgage at the "mini jumbo" rate, which is only an eighth of of a percent higher (?) than the conforming loan rate. HELP! this is so confusing! Thank you

Can someone please help me cross check my answers?

My husband wants to refinance with a 3 year prepay penalty loan? We have a home that its rent is about half of the mortgage. My husband wants to get a loan with 3 year pre-pay penalty and take out some money as well. This way he wants to lower our monthly payments but at the same time, get the equity as cash. In 3 to 5 years if the housing market is still bad, he wants to let go of the loan and foreclose, and if the market is good, then he wants to sell. We are a little squeezed for money now and I think he is not thinking rashionally. Is this a good thing?? We have a great rate of 6% fixed now on the house, but we got a second mortgage on it that is making our payments a little high. What are the consequences of getting such a loan and should we just try and pay the high mortgage. Who knows what's going to happen with home prices? This is a house worth 1.2 mil and we owe about 950 thous on it. Help me.

How do I refinance my house without a credit score? I have excellent credit and zero debt. My house is paid for, debt free, and I do not have any outstanding debt. I have had loans in the past, but I've paid them off. Therefore, I do not have a credit score. I want to tap into the equity on my house and take out a second mortgage on my home, but the bank says that I do not have a credit score. Does anyone have any ideas on how I can get a competitive rate with no score?

Should big brother bail out subprime? Or should it reinforce that speculation is speculation? Someone still needs to explain to me why I or any other taxpayer should bail out a homeowner that was able to purchase a house they couldn’t afford in the first place. The fact is is that the vintages of mortgage loans primarily impacted (late 05, and 06, 07) are subprime with little/no documentation of income (read in–they did not have enough to support the payments after the teaser rate ended and should have known it), home equity lines of credit (read in–they lived beyond their means), and second mortgages (see preceding comment). In many cases, these were speculative investments where the investor/homeowner thought they could flip the house. And I (as a taxpayer), who purchased only that amount of property that I could afford and got a loan commensurate with that thought process should pay for those who should never have been in that house in the first place? Note that I don’t even have a house–I have a condo, but I’m supposed to pay for someone else to have a house they shouldn’t? I asked this question to get other perspectives. Tony, you raise an interesting point about those who bought houses for their families at the then-current market price and got screwed by all the speculators. Theoretically, they could have rented for the time being due to the exorbitant prices, but that assumes they knew the bubble would pop. Since buying a house is a huge investment, do you think all buyers should have educated themselves and avoided buying in a bubble? Or do you think this is entirely impractical? Being in the business, you might have a better idea than I. Thanks for your input. Nuff, your point concerning redistribution of wealth via tax rebates is interesting. I'm glad you mentioned that. Do you have a reference for the 56 trillion #? Rush The Band & Stage Dive, There are talks going on right now about the degree of intervention, if any, the government should pursue. Paulson seems to be right on expressing educated views rather than "speculation." (Wouldn't it be ironic to fix a problem caused by excessive speculation with yet more speculation?) "'While some in Washington are proposing big interventions, most of the proposals I’ve seen would do more harm than good,' the secretary said in remarks prepared for delivery to the Economic Club of Chicago, according to The Associated Press. 'If borrowers aren’t willing to ask for help or respond to efforts to reach them, there is only so much that others can or should do on their behalf.' The speech was expected to reiterate points that Mr. Paulson made in an interview published Thursday in The Wall Street Journal. Too many of the aid proposals circulating in Washington are 'bailouts' designed to help the reckless, he told The Journal." [1] [1] http://www.nytimes.com/ 2008/02/28/business/ 28cnd-econ.html?hp Thank you all for your inputs. I like Yahoo Answers for collecting other perspectives to balance out my views. Metallic, Too few people realize the importance of feedback. We train animals by how we respond to their various activities (if I understand correctly: otherwise, correct me here). People aren't so different from my observations. Are responses to the actions of others are FAR more important than our words of caution (lol). If we reward (and it is a reward as far as feedback is concerned) their excessive speculation, they will learn that future speculations will be similarly bailed out. For daddy to bail out spoiled little junior only reassured him that he can be as immature as he wants 'cuz he'll always be bailed out. The end result is much more speculation. Rather than sheltering whoever these people are (and that's a question I'd like to see answered), perhaps they should learn their lessons rather than having big brother reinforce their behavior. I agree with your point completely. Thank you. oops: "Our responses..." (tired) re-oops: "only reassures" (no preview option for additional details) Re: national debt (net) 5.2 - 5.5 trillion held by the public [2, 3] [2] http://www.treasurydirect.gov/ NP/BPDLogin?application=np [3] http://zfacts.com/p/461.html

Is "ALL WELL" with the banking system? I think not? Your thoughts? 1. Paulson appears on Face The Nation and says "Our banking system is a safe and a sound one." If the banking system was safe and sound, everyone would know it (or at least think it). There would be no need to say it. 2. Paulson says the list of troubled banks "is a very manageable situation". The reality is there are 90 banks on the list of problem banks. Indymac was not one of them until a month before it collapsed. How many other banks will magically appear on the list a month before they collapse? 3. In a Northern Rock moment, depositors at Indymac pull out their cash. Police had to be called in to ensure order. 4. Washington Mutual (WM), another troubled bank, refused to honor Indymac cashier's checks. The irony is it makes no sense for customers to pull insured deposits out of Indymac after it went into receivership. The second irony is the last place one would want to put those funds would be Washington Mutual. Eventually Washington Mutual decided it would take those checks but with an 8 week hold. Will Washington Mutual even be around 8 weeks from now? 5. Paulson asked for "Congressional authority to buy unlimited stakes in and lend to Fannie Mae (FNM) and Freddie Mac (FRE)" just days after he said "Financial Institutions Must Be Allowed To Fail". Obviously Paulson is reporting from the 5th dimension. In some alternate universe, his statements just might make sense. 6. Former Fed Governor William Poole says "Fannie Mae, Freddie Losses Makes Them Insolvent". 7. Paulson says Fannie Mae and Freddie Mac are "essential" because they represent the only "functioning" part of the home loan market. The firms own or guarantee about half of the $12 trillion in U.S. mortgages. Is it possible to have a sound banking system when the only "functioning" part of the mortgage market is insolvent? 8. Bernanke testified before Congress on monetary policy but did not comment on either money supply or interest rates. The word "money" did not appear at all in his testimony. The only time "interest rate" appeared in his testimony was in relation to consumer credit card rates. How can you have any reasonable economic policy when the Fed chairman is scared half to death to discuss interest rates and money supply? 9. The SEC issued a protective order to protect those most responsible for naked short selling. As long as the investment banks and brokers were making money engaging in naked shorting of stocks, there was no problem. However, when the bears began using the tactic against the big financials, it became time to selectively enforce the existing regulation. 10. The Fed takes emergency actions twice during options expirations week in regards to the discount window and rate cuts. 11. The SEC takes emergency action during options expirations week regarding short sales. 12. The Fed has implemented an alphabet soup of pawn shop lending facilities whereby the Fed accepts garbage as collateral in exchange for treasuries. Those new Fed lending facilities are called the Term Auction Facility (TAF), the Term Security Lending Facility (TSLF), and the Primary Dealer Credit Facility (PDCF). 13. Citigroup (C), Lehman (LEH), Morgan Stanley(MS), Goldman Sachs (GS) and Merrill Lynch (MER) all have a huge percentage of level 3 assets. Level 3 assets are commonly known as "marked to fantasy" assets. In other words, the value of those assets is significantly if not ridiculously overvalued in comparison to what those assets would fetch on the open market. It is debatable if any of the above firms survive in their present form. Some may not survive in any form. 14. Bernanke openly solicits private equity firms to invest in banks. Is this even close to a remotely normal action for Fed chairman to take? 15. Bear Stearns was taken over by JPMorgan (JPM) days after insuring investors it had plenty of capital. Fears are high that Lehman will suffer the same fate. Worse yet, the Fed had to guarantee the shotgun marriage between Bear Stearns and JP Morgan by providing as much as $30 billion in capital. JPMorgan is responsible for only the first 1/2 billion. Taxpayers are on the hook for all the rest. Was this a legal action for the Fed to take? Does the Fed care? 16. Citigroup needed a cash injection from Abu Dhabi and a second one elsewhere. Then after announcing it would not need more capital is raising still more. The latest news is Citigroup will sell $500 billion in assets. To who? At what price? 17. Merrill Lynch raised $6.6 billion in capital from Kuwait Mizuho, announced it did not need to raise more capital, then raised more capital a few week later. 18. Morgan Stanley sold a 9.9% equity stake to China International Corp. CEO John Mack compensated by not taking his bonus. How generous. Morgan Stanley fell from $72 to $37. Did CEO John Mack deserve a paycheck at all? 19. Bank of America (BAC) agreed to take over Countywide Financial (CFC) and twice announced Countrywide will add profits to B of A. Inquiring minds were asking "How the hell can Countrywide add to Bank of America earnings?" Here's how. Bank of America just announced it will not guarantee $38.1 billion in Countrywide debt. Questions over "Fraudulent Conveyance" are now surfacing. 20. Washington Mutual agreed to a death spiral cash infusion of $7 billion accepting an offer at $8.75 when the stock was over $13 at the time. Washington Mutual has since fallen in waterfall fashion from $40 and is now trading near $5.00 after a huge rally. 21. Shares of Ambac (ABK) fell from $90 to $2.50. Shares of MBIA (MBI) fell from $70 to $5. Sadly, the top three rating agencies kept their rating on the pair at AAA nearly all the way down. No one can believe anything the government sponsored rating agencies say. 22. In a panic set of moves, the Fed slashed interest rates from 5.25% to 2%. This was the fastest, steepest drop on record. Ironically, the Fed chairman spoke of inflation concerns the entire drop down. Bernanke clearly cannot tell the truth. He does not have to. Actions speak louder than words. 23. FDIC Chairman Sheila Bair said the FDIC is looking for ways to shore up its depleted deposit fund, including charging higher premiums on riskier brokered deposits. 24. There is roughly $6.84 Trillion in bank deposits. $2.60 Trillion of that is uninsured. There is only $53 billion in FDIC insurance to cover $6.84 Trillion in bank deposits. Indymac will eat up roughly $8 billion of that. 25. Of the $6.84 Trillion in bank deposits, the total cash on hand at banks is a mere $273.7 Billion. Where is the rest of the loot? The answer is in off balance sheet SIVs, imploding commercial real estate deals, Alt-A liar loans, Fannie Mae and Freddie Mac bonds, toggle bonds where debt is amazingly paid back with more debt, and all sorts of other silly (and arguably fraudulent) financial wizardry schemes that have bank and brokerage firms leveraged at 30-1 or more. Those loans cannot be paid back. What cannot be paid back will be defaulted on. If you did not know it before, you do now. The entire US banking system is insolvent. I have my garden, well stocked pantry sheld, outdoor stove, fire wood and propone burners. This will get worse...much much worse........good luck to all!!....be prepared

Recession or major economic issue? I am a fairly young investor having only gone through the tech boom/bust. I made it through that issue. Here is my problem with this current downturn. First, there are the subprime mortgages which were a mistake (I find the fact that some of the loans actually occurred as shocking). Second, I have heard that a good number of people relied on their home equity to pay consummables. I am not sure if that is true but that makes little sense to me. Thirdly, these loans were packaged as investments (I think the drop in these investments led to people not wanting to grant credit). Fourthly, the fed dropped the fed funds rate 3/4 of a point and will likely drop it again. To me, this all argues for a decrease in what consumers have to spend. Further, I think this also argues for a fairly substantial recession. It just seems that the credit and equity issues will take a while to work out. Am curious about where we are headed. I also do dollar cost averaging. Regardless of what the market does, my wife and I will continue to do this. I will come up with an argument as to why I think it (the market) will drop but honestly if I were truly good at it I would be considerably wealthier than I am now (I would be living someplace warm and not needing to work). Am simply curious what the thoughts are out there.