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If you are looking at home refinance or getting a new second mortgage you may want to consider both your local bank and online lending institutions. Second mortgage lenders post newsworthy 2nd mortgage interest rates online to applicants for fixed home equity loans and variable rate credit lines with various amortization options.
Consumers can select fixed terms ranging from 10-30 years and 10-20 year draws for home equity lines of credit. Mortgage Loan Outlet continues to offer reliable second mortgage lending products that benefit borrowers with cash and payment reduction services.
Mortgage Loan Outlet works with the finest Second Mortgage Lenders in the home finance industry!
Due to competition you may be able to find lower second mortgage lender rates online than at the local level. It is always best to shop around to find not only the best rate but to check on customer satisfaction as well. The good news for consumers is that Mortgage Loan Outlet has already done the rate shopping for you. All you need to do is complete one simple form online and we will pair you up with best lenders on the internet.
| Second Mortgage Lending for Debt Consolidation |
Get Approved for a refinance loan that offers a fixed interest rate. Stop letting your revolving debt escalate and apply for a debt consolidation loan that can help you save money and earn additional tax deductions that may refund you some of the money you already earned!
Re-build your credit & Lower your mortgage payment. Get approved & consolidate debt. |
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Some questions you may want to ask someone who has used the lender you are
thinking about using are:
1. Did you get all your mortgage and loan questions answered?
2. Did the loan process go smoothly, and did you feel confident in the way it
was handled?
3. Were all lending fees discussed up front and in detail? Was there any undisclosed
refinancing fees?
4. Was the loan process explained in detail to you so you could understand it
easily?
5. Did your second
mortgage lender make every effort to please you so you felt you were getting
a good deal?
6. Do you still feel confident you got the best mortgage rate available to you?
7. Have you contacted your lender since closing the loan, and if so did they
handle your loan questions to your satisfaction?
8. Did you feel pressured to close the loan early or sign papers before you
were ready?
9. Did you receive your funds or close the home in a timely manner?
10. Were you given time to review all loan papers before signing?
11. Was everything properly recorded at the court house?
12. Would you recommend this lending institution?
13. What do you like the least about this lending institution or your second
mortgage?
Second
Mortgage Lender FYI
What lenders look for
Lending institutions consider several criteria when someone applies for a home
equity loan. These criteria give the lender an idea of the big picture concerning
your financial health and personality.
The rules are not always hard and fast. For example, applicant Joe Doe is shelling
out half his income for bills, but when it comes to paying on time, he's got
a stellar past. Mr. Doe could still be a "go" for a home
equity lender because one factor balances out another.
To prepare yourself for scrutiny, here's a rundown of what a second
mortgage lender looks at in prospective home
equity borrowers.
Credit history: Reports obtained through the major credit reporting
agencies tell a lender a lot about your borrowing habits and how well you manage
your money. These reports tell how much you owe, when you pay, and whether you've
had any bankruptcies or judgments. Bad credit -- such as late payments, repossessions
and delinquent accounts -- remains in your credit history for seven years. Bankruptcy
remains on your record for 10 years.
The story of your credit determines your credit grade; it's just like being
back in school. If you get an A, the lender will quote you its best rate and
terms. An A-minus might cost a little more in rate and fees. A grade of B is
pricier still, and C costs even more. You don't want to make a D.
If your credit grade is C or D, you may still qualify for a loan if you have
factors that would balance out another credit blemish. But expect a "sub-prime"
or "non-conforming" loan at a higher interest rate than the one your
squeaky clean A-grade neighbor obtained.
You should examine your credit report and learn your credit score before you
apply for a loan.
Source of income: Lenders know that an interruption of income
due to loss of job or illness can cause a borrower to default on a loan. Hence,
they look at several things in relation to earnings:
Salary or wages from a job: second
mortgage lenders want to know how much you make and how long you've been
at your job, as well as how long you have been working in your particular field.
Self-employment income: Your net earnings -- gross income minus business
expenses -- and how many years the business has been providing this income.
Unearned income: The annual amount and sources are important. Secure
pensions, high-rated bonds and other stable sources are preferred.
Debt-to-income ratio: How much of your monthly income goes toward paying
off your second
mortgage, credit card bills, car payment and other obligations -- including
the payments you would have to make on the loan for which you are applying --
determines your debt-to-income ratio.
Of course, the lower the debt the better. Most people are expected to have a
debt-to-income ratio of somewhere between 25 percent and 50 percent. When you
hit 45 percent or more, you're living on the edge and a second
mortgage lender is going to look twice. But if there are other factors in
your favor, such as high income, it's a judgment call on the part of the borrower.
Loan-to-value (LTV) ratio: In short, this is the ratio between what
you owe on your house and what it's worth.
In general, the better your credit, the higher an LTV ratio second
mortgage lender will allow you to carry
To calculate an LTV ratio, let's say you agree to buy a home with a fair market
value of $100,000. You put down $20,000 -- or 20 percent -- of the price as
down payment. You borrow the rest -- $80,000 -- to complete the purchase. That
means your mortgage LTV ratio is 80 percent, because your loan amount is 80
percent of the value of the home.
How is LTV calculated for a home
equity loan?
Let's say your house now has a fair market value of $150,000, and your first
mortgage has a principal balance of $50,000. Your equity is $100,000. If you
want to borrow $40,000 against that equity, combine that with what you owe ($50,000),
and it leaves you with a total debt of $90,000.
In this case, your combined debts of $90,000 are compared with your home's
value of $150,000, for a total LTV ratio of 60 percent.
Traditionally, LTV caps are 80 percent, but there are second
mortgage lenders who will give out loans of 125 percent loan-to-value --
which means they are letting you borrow more than your house is worth. (See
Risks of High-LTV loans.)
What you plan to do with the loan: Although prospective borrowers are
not required to disclose why they want an equity loan, second
mortgage lender will usually ask -- and it is one of the factors they consider
because it can help determine your ability to repay.
For example, if you plan to use the money to consolidate revolving credit debt,
bankers see that as a positive.
"Different second
mortgage lender have different factors," says Steve O'Connor, senior
director of residential finance for the Mortgage Bankers Association of America.
"If they see you are using it to improve your risk profile they know that
they are more likely to get repaid."
Documentation: Be prepared to show your second
mortgage lender proofs of income, such as W-2s, tax returns and other earnings
statements. Borrowers who can't provide all the necessary documents to back
up the numbers the second
mortgage lender is looking for may be denied credit or charged a higher
interest rate.
Tip: Be sure you give accurate answers about your income, assets, debts
and other information. Penalties can be tough for borrowers who give false information
to obtain credit.
Benefits of Second Mortgage Lenders
- No Equity required
- Don't need to touch your existing Low Rate 1st Mortgage
- Tax Deductible
- Consolidating Debts will Lower Your Monthly Payments
Program Highlights
- 125% Second Mortgage
- 1st Time Homebuyers OK
- Poor Credit OK
- No Verification Income Loans
- Self Employed Borrowers OK
- Interest Only Loan Options
- Home Equity Lines of Credit
How to find the best Second Mortgage Lenders
Free Mortgage Quote
No obligation & No cost
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