Financing in Boston>Question Details

Trulia Boston, Home Buyer in Boston, MA

Are there downsides to a second mortgage beyond the higher interest rate?

Asked by Trulia Boston, Boston, MA Wed Mar 6, 2013

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James Furlong’s answer
The upside can be no PMI - you should meet with your lender and go over the basic mathematics to work out what suits you best. The interest on your 2nd mortgage may be tax deductible. Just had a buyer qualify for an 80/17/3 loan which means and 80% first mortgage and a 17% second mortgage with a 3% down-payment (this was a Mass Housing loan product), and really works well for this buyer.
1 vote Thank Flag Link Sun Mar 17, 2013
depends on reason for second mortgage, not enough cash to buy the property no downside.

Taking equity out of property downside is you could be underwater should values fall.
0 votes Thank Flag Link Thu Mar 7, 2013
You should contact a mortgage broker or your local bank.
0 votes Thank Flag Link Wed Mar 6, 2013
I would speak with a mortgage broker.

If you like I can rec. you a few of them.

Best Of Luck
0 votes Thank Flag Link Wed Mar 6, 2013
Please refer to this mortgage broker. He is really good and can answer all your questions regarding mortgages and loans.
Rich Clayton
Vice President â—Š Senior Mortgage Planner
ǁ Direct 617.830.5265 ǁ efax 781.990.0269 ǁ APPLY NOW! ǁ MLO454889
0 votes Thank Flag Link Wed Mar 6, 2013
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