Posted on: 19th Aug, 2009 07:40 am
i want to apply for a 2nd mortgage (fixed rate home equity loan ) and use some of if to pay down my first mortgage.
is this a good idea and is this legal?
is this a good idea and is this legal?
good idea? no - second mortgage rates are typically higher than first mortgage rates. if you find that to be untrue, then maybe it's worth it.
legal? sure, why not?
legal? sure, why not?
Sorry I left this info out: Ist mortgage interest rate: 6.6%; 2nd mortgage interest rate: 5.5%.
So with this info, I guess it's a go, right?
So with this info, I guess it's a go, right?
Hi ab!
Welcome to forums!
With the rates that you've mentioned, it would be a good idea to go for a second loan. However, if you're unable to pay off the first mortgage in full, you would be responsible for paying both the mortgage payments every month. In my opinion, it would be better if you could refinance the loan. This would give you some extra cash and you would also be able to pay off your first mortgage dues.
Sussane
Welcome to forums!
With the rates that you've mentioned, it would be a good idea to go for a second loan. However, if you're unable to pay off the first mortgage in full, you would be responsible for paying both the mortgage payments every month. In my opinion, it would be better if you could refinance the loan. This would give you some extra cash and you would also be able to pay off your first mortgage dues.
Sussane