Refinance Rates and 2nd Mortgages
Mortgage Loan Outlet manages a network of second mortgage lenders offering variety of home equity loans with fixed interest rates or variable revolving credit lines. Today that percentage has decreased to less than 15% of refinance transactions are second mortgage liens. Lack of equity and high default rates have taken their toll on second mortgage programs. We help homeowners get connected to lenders who specialize in 2nd mortgages like Citi Bank, BD Nationwide Mortgage and Countrywide.
There's limited time left to take advantage of historically low interest rates before they return to normal. Don't miss the era of 2nd mortgage refinancing - waiting any longer to secure a 2nd mortgage could cost you hundreds or thousands of dollars! Are you one of the millions struggling to stay afloat financially - or envious of others who seem to be on a path towards financial freedom? Have you considered improvements that could add aesthetic as well as financial value to your home, such as a remodeled kitchen or room addition? Are you drowning in high-interest credit cards with balances that never seem to drop? A second mortgage loan could be the first step in qualifying for a loan that gets you back on track.
Home refinancing could be just the answer that you're looking for! With a second
mortgage from Mortgage Loan Outlet, you can access the equity in your home
to fund those improvements, consolidate those debts, and even finance large
purchases, such as your child's education or a dream vacation. Time is money,
so don't wait any longer to begin to realize your financial dreams!
2nd Mortgages battle Private Mortgage Insurance
A temporary change in tax laws making payments tax deductible has increased mortgage insurance demand, but the tax break is only valid in 2007. After committing to risky adjustable-rate loans or multiple mortgages to pay less upfront during the housing boom, borrowers with limited capital for down payments are increasingly opting for safer fixed-rate mortgages backed by private mortgage insurance. Applications for private mortgage insurance, or PMI, rose 56% to 191,525 in March from February, according to the Mortgage Insurance Companies of America, an industry trade group. Volume fell in April, but remained well above rates from last year.
"The typical homeowner is savvier than average consumer and some borrowers are considering the fixed rate 1st mortgage loan with insurance," said Arthur Nourian, a mortgage consultant and author of the acclaimed book, "Earning Equity and Building Wealth with Your Home".
Private mortgage insurance is in most cases required by the lender when a borrower wants a home mortgage loan but is putting down less than 20%. PMI It costs a fixed percentage of the total loan, and insures the mortgage lender or bank against loan default. According to Inside Mortgage Finance, “about $72.9 billion, or 11%, of the $680 billion in new mortgages originated in the first quarter were backed by PMI, according to, a weekly industry newsletter.
That percentage is rising, said Guy Cecala, the newsletter's publisher -- and not just because of consumer caution. "The growth is also due to the fact that there's been a shift away from 'subprime' mortgages toward conventional ones." Mortgage lenders have curbed loans to people with poor credit after that category had a surge in defaults and delinquencies. To qualify for federal backing from Freddie Mac and Fannie Mae, loans must carry insurance. But during the housing boom that ended nearly two years ago, lenders were less worried about defaults or federal guarantees, and offered a host of options for borrowers without a large down payment. Many customers took on loans that had low introductory payments that would reset a few years later. With home prices rising, owners reasoned they could either sell the property before the payment rose, or refinance at a lower or fixed rate. "People thought the system was working for them, so why pay more initially when prices are rising?" Ms. Wachter of Wharton said.
In a recent article, the Pittsburg Gazette discusses one of the most popular loan combinations, the "piggyback" loans. In what is known as a 80-10-10 loan, borrowers took out a mortgage for 80% of the home, paid 10% in cash, and then "piggybacked" a second mortgage onto the first for the remaining 10%. The second mortgage usually carries higher interest rate and in some cases it is an adjustable rate. With mortgage rates going up, that second mortgage could be costly if you do a piggyback loan that has a variable interest rate.