What To Do With Your Second Mortgage?
Posted Sep 15, 2009 @ 12:50 pm, Viewed by 152 Visitors, Read 153 Times.People with second mortgages are having trouble getting new first mortgages these days. So what are they hold ups? The first issue that comes up is your first and second mortgage combined loan to value ratio. Since value's have dropped over the past few years people are finding that they are upside down, or close to it between their first and second mortgages. With most second mortgage lenders looking for you to be at and 85% CLTV (combined loan to value ratio) it makes getting your second mortgage subordinated pretty tough.
So what options do you, as the borrower have? First option is to cut the balance on your line of credit to fit the guidelines. This can be done by calling up your bank and asking them to lower the credit limit. If you are maxed out on your credit limit, and want to refinance your first mortgage to take advantage of the current low rates, then you need to check and see if your second mortgage holder took TARP money. If your bank took TARP money, and you qualify for a Fannie Mae Refi Plus, or a Freddie Mac HARP loan, then your in luck. Banks that took TARP money are required to subordinate your second mortgage reguardless of your CLTV. While its tougher to work with second mortgages than it used to be, its not impossible, but make sure you are working with an experienced loan officer who can help navigate you through the process.
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I've lived in the DC metro area my entire life; growing up in Montgomery County Maryland and attending the University of Maryland. I now live in Arlington, Virginia. Living all around the DC area has given me a great understanding of the real estate market.
After graduating from the University of Maryland, I worked as a loan officer in Gaithersburg for three years. I then opened my own mortgage brokerage company, which I ran and operated successfully for several years before agreeing to a buyout by my partner. Now, I have found a home at Choice Finance where I am able to grow professionally and better serve my clients.
My experience has helped me refine my business techniques and find my niche in the FHA Jumbo Market. It has also enabled many clients to take advantage of this program, which in turn lowered intrest rates and saved them money. My combination of experience and know-how has lead me to become a great resource for my clients and enabled them to achieve their dream of homeownership. Read More
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