Is it possible to get a 2nd mortgage to pay down part of the first mortgage?
by Mortgage Rates on Thursday, September 16th, 2010 | 4 Comments
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Do you think that any 2nd trust deed lender will give you a loan on property that you have no equity in? Those days are long gone.
Making bone-headed loans like that are why the U.S. is why in this mortgage crisis and recession.
Right now, you can’t do it. Traditionally you have to put down 25% to buy a non owner occupied house (1st mortgage).
Right now, no banker will loan money to a house that is below water. In fact, many banks will will not refinance a balloon. Even though, they know it will push you into foreclosure.
No. If you paid $120K for a property 3 years ago, put 20% down, and financed $100K and now the property is worth $95K you have no equity. The only way you would get a second mortgage was if the property was now worth $150K, meaning 80% equity would be $120, and then you then you could maybe get a 2nd for the difference between what you owed ($95K) and the 80% equity ($120) for a total loan of $25K. And that is speaking owner occupied, for an investment property it is probably more restrictive on the ratios. See if you can get your original mortgage refinanced.
This makes no sense.
You will end up with the same balance, but now 2 payments, not one.
Your monthly payment on the adjustable would not lower with the lower balance, it only lowers the # of over all months you have to pay it off.