Our second mortgage programs can be tailored to your specific needs. Below is some information to help get you started. To get started immediately click here for our on-line application.
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| There are many options for home owners who wish to borrow money from the equity in their homes. One program is called a home equity line of credit (HELOC). This type of loan acts like a revolving credit card against your house. It is like a credit card in that the "credit limit" is available to draw against over a period of years--the balance can increase and decrease depending on how you draw money out and pay it back, and the interest rate is variable. It is unlike a credit card in that your house is used as collateral, so there is a risk to your home if you default on payments. This source of credit can have certain tax advantages (tax deductable interest), and generally allows you to borrow larger sums of money at interest rates that are more attractive than credit cards. The funds that you receive from a home equity credit line can be used to fund anything from home improvements to a child's school tuition. HELOCs are best when the need for funds is not all at once, such as a home improvement project, when there may be several "draws" over a period of time. The advantage of this is that the monthly payments are based on the outstanding balance (how much you've drawn out), not the entire "credit limit" of the line.
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Mortgage lenders offer several different terms for second mortgages. The repayment terms for your second mortgage will depend on your individual circumstances and will depend on the amount of time you will require to pay back the loan in full. It is often difficult for borrowers to repay a large loan in a short period of time. For this reason, a fixed rate second mortgage on your home can be repaid for terms from 5 to 30 years. And because the rate is fixed there is no worry of adjustments. This type of loan gives you peace of mind as it usually gives you a fixed payment that does not change. Unlike a HELOC, the total amount of the loan is given to the borrower all at once and monthly payments are based on the entire amount. This type of mortgage is best when there is need for the entire loan, such as consolidating other debts like credit cards. In some cases, when there is little or no equity in your home, if your credit history is good, some fixed rate second mortgages do not require equity. You may still be able to consolidate debts, like credit cards, into a fixed rate second mortgage with terms more favorable than those offered by the credit cards.
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The expense of a second mortgage depends on the type of loan required and the lender. Borrowing money with a second mortgage can be costly because many costs, such as processing, escrow, title and appraisal fees are constant fees--the same amount is charged regardless of the amount borrowed. For smallerl loan amounts the total costs can be high relative to the size of the loan. Also, most mortgage lenders charge a fee for lending money and this fee can be based on a point system (one point is equal to one percent (1%) of the loan amount) or they may charge a flat fee for smaller loan amounts. Laws in some states place a cap on the amount of money that can be charged for a second mortgage.
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The two most common types of interest rates that can be linked to your second mortgage are adjustable rates and fixed rates. Adjustable rate mortgages allow the interest rate to fluctuate during the life of the home loan, such as with a HELOC. Fixed rate mortgages, on the other hand, maintain the same interest rate for the life of the loan. Both fixed and adjustable rate mortgages have their strengths and weaknesses. In today's unstable economy, adjustable rate mortgages can be risky for the homeowner because the rate can increase with little notice. Also, interest rates for second mortgages are generally higher than rates charged for first mortgages due to the added risk for the lender of being in a junior lien position.
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As a home owner, it is important to determine what your monthly payment will be when you take out a second mortgage or home equity line of credit. When the monthly payments are calculated you will have a better idea of your ability to pay for the loan. Mortgage lenders are not required to determine your exact monthly payment on a home equity credit line because it will vary month to month, but we will instruct you about how the payments are calculated on a monthly basis.
| | At Infinity Capital Mortgage Inc we offer several different Seattle second mortgage terms and Seattle second mortgage rates for your Seattle second mortgage. Many Seattle home owners have benefited from our Seattle second mortgage programs. For more information on your Seattle second mortgage contact your second mortgage experts at Infinity Capital Mortgage Inc.
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