Home Buying in Brookland>Question Details

marianag36, Home Buyer in 20010

Is it still possible to get piggy backed second mortgages? How much extra would that cost us to close if we did that?

Asked by marianag36, 20010 Mon Jan 21, 2013

Home asking price is $525k

--
This question was asked from this property: http://www.trulia.com/property/1076667629-1843-Monroe-St-NE-…

Help the community by answering this question:

Answers

8
Natalie Dean’s answer
Brent gives great advice on mortgages! Tread lightly some of these loans are what ended many homeowners in major hotwater and in some cases loosing their homes. Much better to purchase less home and get one loan then going overboard. There is no guarantee on property values and they have fluctuated greatly over the past 5 years.

All the best!
2 votes Thank Flag Link Mon Jan 21, 2013
BEST ANSWER
They are VERY hard to find. I do not know of one for a purchase to 90%. Almost everything I see if limited to 85% CLTV. Remember in most cases the 2nd will be interest only so will rise over time. Even if you find them take a look at the pros and cons of the loan. A good lender will walk you thru that. One thing is you have options on the PMI if you borrow more than 80%. You can buy it out in cash or have a mortgage lender pay it for you in exchange for a slightly higher interest rate. Again a good lender should run all numbers, all scenarios and present you with a tailor made program depending on your situation. There is no right or wrong answer. Hope this was helpful and please let me know if you have any other questions.

Thanks,

Brent Mendelson
Senior Loan Officer
1ST Mariner Mortgage
O-240-235-5314
C-301-412-0259
F-240-235-8236
Bmendelson@1stMarinerbank.com
Lending in all 50 states
nmls#111407
2 votes Thank Flag Link Mon Jan 21, 2013
Hi Brent, Speak with your mortgage lender.
0 votes Thank Flag Link Mon Jan 28, 2013
Hi Marian,

Yes, these products are still available, and were so even through the market crash. You just have to go to the right lender and have good enough credit.

Shop around for a lender who can answer your question on the costs, and check out the fees on the back end before signing anything. Hope this helps.

:)
Kelly
0 votes Thank Flag Link Wed Jan 23, 2013
Thank you so much for the compliment Natalie! Great point also on the home prices and how up and down they have been. If you have a non fixed rate 2nd that also adjust in 5 or 10 years well as you can see most real estate and lending professionals don't recommend. Thanks again.

Brent Mendelson
1st Mariner Mortgage
0 votes Thank Flag Link Mon Jan 21, 2013
Hi marianag36, Consult a mortgage lender.
0 votes Thank Flag Link Mon Jan 21, 2013
By the way, the only additional cost is the slightly higher interest rate for the second loan. However, it will probably save you from paying PMI!
0 votes Thank Flag Link Mon Jan 21, 2013
These types of products have not been seen . . . Until recently! A few weeks ago, I heard the first rumblings of the much-loved in the "pre-market crash" 80/10/10 mortgage. This type of loan allows borrowers to put down 10%, take an 80% primary loan, and a 10% second mortgage, which can then be paid off separately. It's a great product if you can find it!
0 votes Thank Flag Link Mon Jan 21, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer