What is the difference between a 1st mortgage, 2nd mortgage, and home equity loan?
I am searching for financing to make home improvement repairs, I submitted a request for a home equity loan through lending tree. The lenders throwing out terms such as 1st mortgage, 2nd mortgage, and home equity loan- The # denotes seniority / position in chain of le. A first mortgage is a loan secured by the property that is in 1st position and gets paid what is due them first if the property is sold municipal liens like property taxes are TRULY first, though. A second mortgage is a loan that has a "junior" position behind a first mortgage. Home equity loan is just a colloquial term generally applied to second mortgages. A HELOC, or Home Equity Line of Credit as mentioned by another responder is a TYPE of home equity loan that acts more like a credit card in that you can draw on the equity as needed and pay it back and draw on it again and again during the "loan" term. Technically you can have 3rd, 4th, 5th, etc. mortgages and any of those could be a "home equity" loan in that they would be loans secured by remaining equity in the property, but that would be highly unusual on a residential property
- 1st mistake is using lending tree, you are going to be pestered for months. the differences are the lien position, a heloc is a 2nd mortgage. best advice is go to your local bank and have them go through all your different options. do not use a broker
- 1st mortgage is the one you got when you bought the house. The mortgage company that is on the deed with you. Second mortgage is usually from a different lender. In foreclosure the 1st mortgage holder takes back the house, the 2nd gets paid if there is any money left. Home equity is a loan using the equity in your home as collateral. The terms of the loan are shorter and the rate usually a bit higher. Home equity involves no closing fees in securing the loan. Shop around a bit more. Try the bank where you keep your accounts. You really want the cheapest and shortest loan you can get. Remember at this time we are not creating any equity in anyones home
Knowledge Base
How long will it take the latest 3 / 4% interest rate cut to affect the mortgage and loan companies rates?
with the fed's decision to cut interest rates, i understand that banks will follow suit and lower interest rates. how fast will it take for these changes to go into place? at what point should people begin to investigate refinancing their mortgages and other loans where it will actually reflect (home mortgage calculator)
Public Records Reading - Mortgages, Do home equity loans show or just reverse and second mortgages?
i read public records when doing re research so i am wondering. i guess that only second and reverse mortgages show. and why would someone choose a second mortgage vs home equity loan? are we saying that a home equity loan automatically shows as a lien?. all mortgages and liens (home mortgage loan)
Are there any banks that give mortgage loans to people with bad credit?
i am looking to buy my first home. my goal is to get to a 620 credit score but i know this will take quite some time. i was wondering if there are banks out there that give you loans to buy a home if you have bad credit or (mortgage equity loan)
Knowledge Base: Mortgage Loan
Are there any banks that give mortgage loans to people with bad credit?
i am looking to buy my first home. my goal is to get to a 620 credit score but i know this will take quite some time. i was wondering if there are banks out there that give you loans to buy a home if you have bad credit or (mortgage loan refinance)
What are the key factors in obtaining a home mortgage loan?
my credit is not bad or fair. it's good, just below excellent. how good does your credit have to be and what other factors are key to successfully obtaining a home mortgage loan?. hi ronnie, your credit has to be at least a 640, so i am uming you will (mortgage loan refinance)
can i get a bad credit mortgage loan?
i am having a home foreclosed on, and would like to know if anyone can give me a mortgage?. that's funny. probably not. it's tough to get a mortgage now even if you have good credit. have you contacted your mortgage holder and ask them if they can re - (home mortgage loan)
Can I use my current owned home as collateral on new home mortgage loan?
my family and i live in a home legally donated to us by my father. we have ownership. can we use this home as collateral for a mortgage loan on another home in another state? if so, how does that work?. is the home worth more than the home you (home mortgage loan)
Any advice on bad credit mortgage loans?
yes. do not bother since you will not qualify. you will only be wasting the application fee clean up your credit. you need at least a 620 fico to even apply for a fha loan; 720 for a conventional. you will also need to resolve any derogatory items on your (mortgage loan refinance)
Knowledge Base: Mortgage Equity Loan
How should I go about selling my current home that I have a mortgage and home equity loan on and go about
we want to relocate to my home town to better off my children this would give them a better school district and we would be alot closer to my family, just how do we go about doing this? we have a mortgage on the house we live in now and (mortgage equity loan)
If I purchase a home in all cash would I get a mortgage or home equity loan?
i am planning on purchasing an investment property with a hundred percent cash. i can purchase the property at 60% of market value. i then plan on pulling a loan out for 60% of the market value. would it be considered a mortgage or a home equity loan? a mortgage (mortgage equity loan)
Can some who has a mortgage and an equity loan apply for another mortgage?
i currently own a two family house with a mortgage and equity loan up to it's current market value. can i qualify for another mortgage because i want to buy another house. and how much would i have to put down? bearing in mind that i am not interested in (mortgage equity loan)
how long does it take for a mortgage equity loan to go through?
i have a credit score of about 680 and lived there for 15 years. i owe 185k and the house is worth 410. i am over 15k in credit card debt and had two late payments. i am also retired and on a on and social security. mine took about (mortgage equity loan)
Upon retirement, is it better to pay off my mortgage. & equity loan or continue with payments. ?
i live in charlotte, nc, and plan to retire july 31, 2009. i will be 66 yrs old. i plan on paying off my mortgage & equity loan to have more money available. both loans equal $1125. 00 per month. is this a good idea, or should i invest that (mortgage equity loan)
