Lots of financing available for 'move-up" buyers Washington Examiner
16.12.09
The new $6,500 tax credit recently offered to entice existing homeowners into the market won't go far toward a Washington-area house, but for those who do decide to move up, there are plenty of financing options.
Mortgages come in two sizes: conforming and nonconforming, or jumbo, loans. Conforming loans can be purchased and resold to investors by Freddie Mac and Fannie Mae and can't be bigger than the limits set by the government every year. The access to investors provided by Freddie and Fannie increases the amount of money available for home loans and keeps rates for conforming loans down.
So, though jumbo loans are readily available, a buyer will pay a substantially higher interest rate and larger fees. For example, a major Washington bank recently quoted a conforming rate of 5.125 percent with one point and $1,400 in fees and a jumbo rate of 6.125 percent with no points and $3,500 in fees.
During the recent housing boom, the top limit for conforming loans was raised significantly, and in "high cost" areas like Washington, a conforming loan is one of $729,750 or less. This higher limit applies to the District, Alexandria, and the counties of Arlington, Fairfax, Prince William, Prince George's and Montgomery. This is not a cap on the purchase price, only on what the buyer can finance. For example, with a 20 percent down payment, a buyer could purchase a $912,000 metro-area home.
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2nd Mortgage?
Jul 25, 2008 by T M | Posted in Personal Finance
What will happen with my 2nd mortgage when I foreclose on my first? Will the bank add it to my 1st? It is a tottally seperate account. How will the bank act on it?
Both will default. If the bank owns both mortgages it will be 2 separate debt accounts.
If another bank has the 2nd, you'll have another lender headache to deal with instead of just one.
Sorry to hear about this.
Best of Luck!
Net Advisor | Jul 25, 2008
2nd mortgage Foreclosure: How long is the delay to put it on your credit?
Sep 27, 2007 by hruss7 | Posted in Credit
We paid off a 2nd mortgageforeclosure before it went through. We continued to pay on our first mortgage with no problem. The attempted forclosure was not on our credit report until we refinanced with a new mortgage company. Is this fair? It looks suspicious that it only appeared on our credit after we refinanced with a new company. We understand that business is business but it seems that they were fine with everything until we pulled our mortgage from them and went with another company.
Well, you were late, so the info is accurate.
It is probably just a coincidence... sometimes it takes time to get stuff posted onto a credit report.
Mike | Sep 27, 2007
They can post it on your credit on the 31st day once it becomes late
ruscito_mom | Sep 27, 2007
It sounds like we are pretty much in the same boat. I'd be very interested in talking to you about your rifi and credit issue. We are having all kinds of trouble with ours.. I'm just wondering if maybe its the same company....email me if you dont mind talking about it at jvallery@hotmail.com
angelic_monster04 | Sep 27, 2007
Best Answer - Chosen by Voters
http://www.realestate-investment-solutions.com is the best resource for mortgage information. With over 10,000 posts it is the most comprehensive site of its kind anywhere online.
ancuie s | Sep 27, 2007
Can our 2nd mortgage company attach our wages once our home is sold as a short sale?
May 20, 2008 by TAMMY O | Posted in Renting & Real Estate
Our 2nd mortgage company is suing us for $25,000 (the balance on our 2nd after they signed off the lien for the short sale). They have submitted paperwork to attach 25% of our wages until it is paid off? Is their any legal way out of this?
It will be up to a judge to decide if it is legal or not. Now that they no longer have their security, they are entitled to get their money back in other ways.
You may need to get an attorney to protect your interest, and even then, you may not be able to stop it. He might be able to negotiate a payment plan in lieu of garnishment.
If you miss any payments, though, the garnishment will be re-instated.
armychick_2001 | May 21, 2008
Nope. If there was a legal way out, they would not have been able to get the garnishment.
The only way out is to quit your job. Then, when you get your next job, they can attach to that income. Is there a reason you feel you should be able to steal from them?
LE | May 20, 2008
No. Look, if they offer you a plan whereby you are able to repay that money over a period of years without interest, feel lucky! What they could do is send a 1099 form to the IRS grossing up your income for this year causing you to pay a lot more in income tax. So don't walk away, work with them on this one. You promised to pay and if the proceeds from selling the place aren't sufficient enough to cover both loans, then you will need to work at paying it off. I feel your pain, I'm a Realtor and trying to sell my home on a short sale.
alterfemego | May 20, 2008
Not unless you can work out a payment plan, but I doon't know as though you would be successful in that route, since the 1st loan was sold short & didn't pay off the 2nd.
The bright side is you shouldn't receive a 1099-C on it since it's being repaid through a deficiency judgment & writ of garnishment.
Dawni Do Right | May 20, 2008
Hi Tammy,
Unfortunately, signing off on the lien doesn't release you from the liability of the mortgage. Sorry :(
If however, you are selling the house because of financial hardship, it would be better to get the 1099. It is actually a 1099C which is considered income and does reflect on your taxes. Having said that, you can file "insolvency" which would allieviate the tax burden from you. (This is not tax advice - seek professional tax advice - disclaimer, sorry).
It would also be a good Idea to check your states laws about foreclosures, some states are actually passing temporary laws to help homeowners.
Good luck
RE its what i do | May 20, 2008
None that I know of you legally owe them that money.
NYJ80wc | May 20, 2008
Do you figure mortgage payments for a 2nd mortgage the same as for a 1st mortgage?
Dec 06, 2007 by neffykitty | Posted in Renting & Real Estate
We're about to close on a house and we have a 1st mortgage, and then a 2nd to pay some of the down payment. This avoids PMI.
If I plug the numbers into a mortgage payment calculator, the 1st mortgage payment is the same as the one on the TIL the lender provided. But the 2nd payment isn't - the calculators all say it's less than what the lender is saying.
Is there a different mortgage payment calculator for a 2nd?
No. First mortgage loans are for a much greater amount and you generally will get better terms than on a second - that is if your credit is good.
The payments are calculated by the lending institution by the type of loan you choose. Say B of A is your lender, and the loan you have chosen is for a period of 30 years on a fixed rate. So lets say ...interest is 7.00% and over a period of 30 years on a "fixed" schedule. You would pay the same monthly amount for a period of 30 years.
A second is more than likely different terms. Say
20 thousand at 4.75% (to start) for 10 years at a "Variable" rate. This payment would adjust to different amounts periodically. Watch out for the BALLOON clause...(This is a lump sum that could be due after the 10 years is reached) You would have to read your paperwork to determine if it is a variable interest note and for how long and how often the rate would adjust "Upward". If you had a Line of Credit, this too would have a set of terms.
You should gain knowledge on the the "Fixed" type of loan and the "Adjustable" term note... and types of mortages provided as well as lines of credit and private money.
Good luck-prior home owner and borrower
DeeDee | Dec 06, 2007
Afraid so.
hfrankmann | Dec 06, 2007
It should be the same....what is the term of your second? Maybe that's where you are encountering your problem. Not all seconds will have the same term is the first.
Plus, are you plugging in the correct interest rate on the second? Seconds always have a higher rate than the first.
Cali-Gal | Dec 06, 2007
2nd mortgage rate are usually higher due to the risk factor and sometimes have bonus payments built into them or even a broker's fee. Read the fine print again maybe with your lawyer this time.
MYRA C | Dec 06, 2007
That will depend on whether your 2nd is a fixed rate loan or a Home Equity Line of Credit.
If it is a fixed rate 2nd it may be either amortized over 30 years but due in 15, or it may be amortized over 20 years.
If it a Home Equity Line of Credit the payments are interest only.
mazziatplay | Dec 06, 2007
Your P/I is based on 10.00 for every 100.00 dollars. Did you guys pay closing cost? What percent did you close at? What is you intrest rate based on? What is your Debt -to - income ratio?
soldierb | Dec 06, 2007
Seconds are usually (but not always) amortized over a 30 year period. Look at the final TIL before you close as the one supplied before is really just an estimate.
C B | Dec 06, 2007
Same calculations.
You should verify:
1. Loan amount
2. Rate
3. Term (15yrs? 30yrs?)
Check with the lender and see which of these are off.
DallasLoanGuy | Dec 06, 2007
How does a 2nd mortgage work from the lender's perspective?
Sep 27, 2007 by Angela A | Posted in Renting & Real Estate
I'm specifically looking for what happens in the case of default on the 2nd mortgage when the 1st mortgage is not in default.
What matsonb states is correct, the other guy, not so much. Banks don't "rent out" houses, nor do they assume your 1st mortgage! This is my competition out here answering these questions!
Anyway, the 2nd mortgage lien holder can initiate foreclosure procedures, however...depending on how much you owe them you may have a little bit of time to get things back in order. In most cases the 2nd mortgage lien holder will never get their money if they foreclose, so try working with them to get the payment caught up. If it's a HELOC, see if they can put your payments you are behind on the end of the loan. See if they will re-write your loan for you. Many lenders have "hardship" programs. The next time they call you for a payment, ask them about the hardship program. If the person with an attitude problem on the other end of the phone doesn't know what you're talking about, ask to speak to their supervisor. The supervisor will know.
I hope you find help! Good luck.
Shawna Marie | Sep 30, 2007
If the second mortgage is in default, the lender can foreclose on the property and assume the first mortgage. The foreclosure process involves some legal issues which may vary by state law, but essentially, the lender takes possession of the property and has to continue to service the first mortgage to avoid foreclosure by the first mortgage holder. The holder of the second mortgage can offer the property for sale, or pay off the first mortgage and use the property or rent it.
Serge M | Sep 27, 2007
The 2nd lien holder will foreclose on you. Proceeds from the sale of your house will then go to pay off the 1st lien first... and then what's left will pay the 2nd lien. http://www.choicerealestate.net/
matsonb | Sep 27, 2007
Best Answer - Chosen by Voters
http://www.realestate-investment-solutions.com is the best resource for mortgage information. With over 10,000 posts it is the most comprehensive site of its kind anywhere online.
baby f | Sep 27, 2007
Can you refinance a 1st mortgage and 2nd mortgage without equity?
Jan 21, 2008 by No Equity | Posted in Renting & Real Estate
I own a single family property in IL. I have a 1st mortgage that was 100% LTV that was used to purchase the home and a 2nd mortgage that is a 120% LTV that was used to consolidate debt. The value of the home is about $40,000 short of what I owe based on both loans. I want to refinance my 1st mortgage which is at a rate of 7.25%. Is this possible?
you would have to create equity by putting up the the differance plus probably a bit down as well, looks like that would be a bit of a hefty sum
*Yawn* | Jan 23, 2008
No. I wish there was more to say but there isn't.
If anyone offers to do it for you run away fast, they are liars.
Steven L | Jan 21, 2008
My best advice is to consult an experienced mortgage broker on this question. I hope that you can because rates are far below 7.25% currently making it a great time to refinance.
Go to http://www.MyMortgageSaver.com to have a local mortgage broker contact you.
Good Luck,
Jon
John the helper | Jan 21, 2008
Sorry, but you have over extended yourself. You don't even have enough equity. No point. Check here for more info: http://www.bills.com/home-refinance/
MmmmKay! | Jan 21, 2008
Can the 2nd mortgage company sue me for deficiency upon foreclosure?
Apr 23, 2008 by cooluni | Posted in Renting & Real Estate
I am in the process of foreclosing my house along with 2 rental homes in AZ. I understand that the anti deficiency law protects my assets. However, can and will the 2nd mortgage company sue me or put a lien on my other property/asset for the deficiency? Is there anyway to protect myself?
It's simple if you don't make the payments, they will foreclose. If you signed a promissory note, they could come after you in the form of a filing to the IRS for the balance owned. I suggest you talk with a bankruptcy attorney.
Alterfemego | Apr 23, 2008
Would a 2nd mortgage foreclose on a home if there is no equality?
Jan 10, 2008 by Eric D | Posted in Renting & Real Estate
1st mortgage amount is $322,000 and 2nd mortgage $80,000. The same house is selling for $20,000 less than the total amount. Would the 2nd foreclose or just write off as a loss?
There is really no benefit to them foreclosing the 2nd. Though you will still owe the debt and they most likely would place a judgement on the home to prevent you from any sales or refinance until after they were paid off. It is likely they would settle for less than owed at that time.
flamingojohn | Jan 10, 2008
What are the chances of getting a 2nd mortgage for a trailer near the ocean in a camping ground?
May 17, 2007 by Mom of 2 great boys | Posted in Renting & Real Estate
I've asked this question before about campers, trailers, permanent sites at a camping ground in South Carolina.
I am doing alot of research here and many of my feedbacks have been negative about any bank or financial institute even considering a 2nd mortgage or loan to purchase one of these so called trailers in a campground.
I also am getting negative feedbacks on the resale value on these structures.
Anyone know, or how to go about looking for a reputable lender in South Carolina? I am in North Carolina and my broker does not know anyone nor does he have any advice for me on this situation. He told me to check in South Carolina.
So, here I am asking you.
Any help will be greatly appreciated.
Yes, most of your feedbacks will be negative about banks and financial institutions considering a loan for a trailer, because of the huge risk factor.
You might be able to take out a second mortgage on your current home for the purchase of the trailer. That is a possibility depending on the equity in your current home.
As far as looking for a reputable lending in SC, I would contact the campground where this trailer is and ask them in the office who the lenders are for the majority of trailer owners. Chances are that you will find they have a particular lender or lenders that owners of trailer in that campground use.
Tally | May 17, 2007
How settle 2nd mortgage for less than full balance?
Nov 12, 2008 by insurancelawcase | Posted in Renting & Real Estate
How to settle 2nd mortgage for less than full balance *IF* deed-in-lieu is approved already?
I was never late but applied for Deed in lieu with Countrywide. Now they approved the DIL but now I want to keep the property but settle the 2nd mortgage?
How is it possible?
Taxes on a Deed in Lieu and second lien primary residence
I was wondering I just did a Deed in Lieu of foreclosure in MI on Feb 2nd 2009 on my home that we lived in for 6 years. I already filled my taxes for the 2008 tax year. Before I did the DIL I had to pay down on my second mortgage to have that bank cancel that debt so I could proceed with the DIL. That was done Nov 20th 2008 so I did recieve a 1009-C cancellation of debt 2 days ago after I filled out taxes. The second mortage on line 2 says 35,525.80 The question is andquot;do I need to report it o...
Nicole Brodeur Homeless, smart, savvy and coping Jamee went from being a hotshot mortgage broker with a six-figure income, a home of her own, a BMW, a Suzuki motorcycle and a second house in the works,
Japan’s economy, the world’s second largest, shrank the most since 1974 last quarter, as recessions in the US and Europe triggered a record drop in exports,
with a woman and score a mortgage from a little bank called IndyMac, which would eventually go on to become the second-largest bank failure in history.
guardian.co.ukWill Any Other Republicans Support the Stimulus Deal? Now I owe 250000 on my 2nd and 3rd home equity loans and my house is worth less then my 1st mortgage because of the original cash out refi. Video: Stimulus Bill Expected To Pass Wednesday's News Recap: House, Senate Agree on Stimulus, Cdn Trade Tough week, but Obama likely to get bill -
Insurance News Net (press release), PA - Feb 16, 2009
Mortgage Fraud: A Scourge of the 21st Century? Phantom second liens. In a variation of the previous scheme, a person assumes a homeowner's identity and takes out an additional loan or second mortgage in
guardian.co.ukWill Any Other Republicans Support the Stimulus Deal? Now I owe 250000 on my 2nd and 3rd home equity loans and my house is worth less then my 1st mortgage because of the original cash out refi. Video: Stimulus Bill Expected To Pass Wednesday's News Recap: House, Senate Agree on Stimulus, Cdn Trade Tough week, but Obama likely to get bill -