Posted on: 10th Aug, 2010 05:40 pm
do i need a down payment in order to get a second mortgage of about 200 000$ ?
my first mortgage balance is about 115 000$ and the value of my house is about 430 000$
also should i get a second mortgage or a home equity loan?
me and my wife have excellent credit history
thank you in advance
guy
my first mortgage balance is about 115 000$ and the value of my house is about 430 000$
also should i get a second mortgage or a home equity loan?
me and my wife have excellent credit history
thank you in advance
guy
Hi guypaul,
As you have equity in your property, rather than taking out a second loan or a home equity loan, I would suggest you to go for a refinance. You can cash out your equity by refinancing your current mortgage. Thus, you won't be responsible for two loans. You'll have to pay a single monthly payment and that too at a lower rate.
Thanks
As you have equity in your property, rather than taking out a second loan or a home equity loan, I would suggest you to go for a refinance. You can cash out your equity by refinancing your current mortgage. Thus, you won't be responsible for two loans. You'll have to pay a single monthly payment and that too at a lower rate.
Thanks
If you are refinancing; a down payment is NOT required. James is correct that you should look into refinancing your entire loan and pull cash out. You can take up to 85% of the equity in your home.
