Easy Home Equity Loan

I have a second home that I was renting out but recently lost the renter. I can’t afford to pay the second mortgage because I was laid off. Up until this point my credit has been great. I might be a able to rent it out if I offer cheap rent but I dont think the bank will lower the mortgage payment with out asking for fee.

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My husband and I owned ahome for 2 years – a year ago we refi’d to take out k to do home repairs…we jsut divorced (only filed first set of papers) He insisted on taking the money from that second mortgage and he left me living in the house. His thoughts were that I would get the profit if and when we can sell teh place. But im frustrated becuase it leaves me no money what so ever…and in a house that is in desperate need of repairs. My income alone cannot support mortgage payment and it eerrkkss me that I am also paying 0 a month plus interest on that money he took with him… oh also he justifies this becuase he is in school – which i encouraged him to do originally so he says he needs that money to pay his bills (rent, gas, food, etc) By the way he is 32yo! Opinions welcome…legal advice appreciated. I have heard so many things that can mess people up when it comes to finances and divorce.

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I own a condo. Can I take out a home equity loan on that condo to make the down payment on a new property? If so, what happens when I sell the condo? Since at that point I believe I have to pay off that home equity loan, can I then take out a home equity loan on the new property to pay that off? I just figure since I already own, I should utilize that as much as possible. Also, how much does my credit score play into that? Thanks
I should clarify that I still have a mortgage on the condo, but I did put 20% down when I purchased it. My intention is to rent the condo out, so that will cover that monthly mortgage payment.

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Ok, we have an arm 1st mortgage, we have a normal 30 year fixed for our second. We only need the 1st mortgage modified which we are working on at the moment. But when they say that total mortgage payment"S" can not exceed 31% does that mean 31% of the whole mortgage or just their part of the mortgage. Cause if its just 31% of the first mortgage then we are going to be right back at square one, and we REALLY wont be able to afford it cause my husband just had to take a 8% paycut at work. We have Litton Loan and they are being a pain at the moment. Thanks all!

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I am thinking of buying a new house but would need to get a second mortgage to pay of my second mortgage on the house I already own. Is this possible? The home I am thinking of buying is selling for 8000 but appraised at 0,000 so it has plenty of equity. I am just affraid that my home that I am living won’t sell in order to pay of the 1st and 2nd.
Total 1st: 5,000
Total 2nd: 8,000
Mostly likely will sell for 0,000 or above quickly. So I need ,000 to pay off the second on my home that I am living at.
I can afford a 0,000 home. I just down have ,000 in the bank to pay the second.
I have ,000 for a down payment. I am not sure if I could rent it for my monthly mortgage payment. What if I bought the home for ,000 extra and the owner gifted me the ,000 to pay the second?

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My fiance and I purchased a house 2 years ago, but we recently decided to pursue doctoral degrees in a different state. We need to move to the other state by mid May, and given the current state of our economy, we are concerned that our house will not sell in time. A good friend of ours is willing to rent our house if we can’t sell it, and the rental income will more than cover the monthly mortgage payment as well as taxes and insurance. I understand that mortgage lenders are getting stricter about who they lend money to. Do you think there’s any way that a financial institution will grant us a second mortgage so that we can buy a second house? We have roughly ,000 equity in our current house, and the balance of the mortgage is only about ,000. We also have just over ,000 in savings (not including retirement), so we’ll easily be able to put 20% down. The kicker, though, is that I’ll be giving up my job for a graduate assistantship, so our total household income (not including potential rental income) will likely drop to about ,000. My fiance is a master’s student right now, so his income will not change considerably. If we cannot sell our current home and we’re forced to rent to our friend, then will mortgage lenders include this rental income in our total household income when deciding whether or not we qualify for a second mortgage?

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The problem right now is that if you show positive income to your bank they have no reason to lower your payments since that is how they make money and want to squeeze every penny you make towards that payment, and if you do not show enough to pay the bill the Bank prefers to right up a loss and ask the government for their money back.

My solution, which I hope March 4th the administrations will look like, would be this:
-There is a fixed interest rate between 4.5 to 6% that the Banks MUST modify at. You get the lower end or higher end based on credit. Banks are still profitable at 5% and if they are not it is because the FED is trying to make too much money off its money monopoly.
-Like in many Western European countries, your income needs to be 3 times your new mortgage payment to get the modification.
-As a borrower you are not absolved of any debt, it goes to the back end of the loan and/or should you ask the lender to re-appraise your home at current value to qualify for the above rules, you release any right to positive equity gain from that moment forward to the parties absorbing the loss.

That is it. So if you have a 500,000 loan on a house worth 300,000, at 5% you would get payments of roughly 2K a month for which you need to show you make 6K a month, should you want the property re-evaluated at the market value, your loan payments will drop to 50 for which your income needs to be roughly 4K a month, but you lose all future equity in your home.

If this is still too expensive you cannot afford to be in it any longer. The deal can only be done once and if something happens in the future where you lose your job, your only option is the current repayment type plans.

What do you guys think about it, and what is so hard in implementing this?
The only problem i see is that Banks will prefer to pout and go under on purpose to get bailed out than curtail any lowering of rates.

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I bought my home 14 months ago, it was a foreclosure, and we got a heck of a deal. It appraises at about 0,000 or 5,000 right now, and we paid 2,000 for it.

Since it has only been 14 months, the principal is still at about 0,300. BUT…we are paying like 3 a month for PMI (Property Mortgage Insurance) since we don’t have enough equity in the home at this point. We are also paying an interest rate of 6.75%. I really don’t know how that compares to other people…but I didn’t think it was all that great.

So…..I was just calling around to a few different mortgage companies, and not hearing anything real intriguing until last Friday. I talked to a guy who said he could lower my mortgage payment by a month, lower the interest rate to 6.35%, pay off 00 worth of my student loans (which equates to about a monthly savings), and we would get to skip 2 mortgage payments. Skipping those 2 mortgage payments would then allow me to pay off a laptop lease I have, which would save approximatley per month. I would then have about 00-2000 cash left (from skipping the 2nd month of mortage payment, and getting the remaining balance of my current escrow account), and I could save that, or pay another small student loan off. So…in the end, we could likely knock out close to 0 of monthly expenses, and have 3-4 less bills to send off every month. I really like that idea.

He told me all of this, and I was pretty excited……UNTIL I saw that our new loan amount would be 2,000…. It’s still under what the home appraises for, but I just kinda hate seeing it jump to over 0,000…

I’m not sure how long we will be in this home, but I would guess at the VERY minimum, 5 more years, but who knows, we could be there for another 25. We haven’t really put much thought into it.

Can anyone lend some advice on this? I would appreciate hearing another opinion.

ps- It would be refinancing a 30 year fixed, to another 30 year fixed. And I am 25 years old. Just throwing that out there.

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