Second Mortgage Frequently Asked Questions
How to Get a Second Mortgage

What is a second mortgage loan?
A 2nd mortgage is a lien in addition to the existing mortgage that already exists on title for the subject property. For most second mortgage transactions, lenders will consider the present market value of a home as collateral for home equity loans with an appraisal. There are two types of second mortgages: 1. installment (fixed rate) 2. revolving (variable line of credit)

How much of a loan amount can qualify for with a 2nd mortgage?
To get an idea how much you can borrow you need to determine how much equity you have and then you can get an idea of loan amount possibilities. To calculate the equity in your home, simply subtract the amount your mortgage balance from your appraised value. When you apply for a 2nd mortgage you need to calculate your combined loan to value (CLTV). You calculate this by taking the existing 1st mortgage balance plus the proposed 2nd mortgage amount and then divide that total by your appraised value. For example, if a home is appraised at $200,000 with a 1st mortgage balance of $145,000 and a 2nd mortgage balance of $45,000 then your combined loan to value would be 95%. The loan amount limits may vary if your goal is refinancing a second mortgage.

Can I borrow using a second mortgage? What is the maximum combine loan to value I would be eligible for?
At this time every state allows 2nd mortgages, however states like Texas and West Virginia have specific restrictions. Kansas is the only state that requires full URAR appraisals for 125% 2nd mortgages even if the lender permits the use of automated value appraisals.

What's your credit score?
Click HERE to find out now!

How are second mortgage interest rates determined?
Credit scores, combined loan to value and current market conditions determine the interest rates for second mortgage loans. For high LTV loan, the credit scores will be the driving factor. 125% lending further affect the rate offered.

Do I have to occupy the residence I am using as collateral?
You are required to disclose your occupation status whenever you apply for a new loan. You are not required to occupy a home for second mortgages, but the interest rates and loan-to-value restrictions will change for loan against homes that you are not living in. For most 100 and 125% second mortgage loans, occupying the property is a requirement.

How does cash-out refinancing affect my first mortgage?
Cash-out refinancing with 2nd mortgages does not affect your 1st mortgage interest rate. However if you decide to refinance your current first mortgage without including your second mortgage, you will need to request a subordination agreement from the lender.

What is the rescission period?
There is a three day right of rescission for all second mortgage loans unless it is in a purchase transaction.

Premium Second Mortgage Loans
Refinance Second Mortgage - Rate and Term loans for refinancing credit lines and existing 2nd mortgages.
Sub-Prime Second Mortgages -It is important to reestablish your credit after a bankruptcy and nothing helps your credit score better than mortgage payments made on time.
125% Second Mortgage - Take out another lien against your home that allows you to go beyond the value of your home. No equity is required but you need good credit to qualify.
Home Equity Line of Credit - Set up a cash line today and access funds on your timeline.
Interest Only Fixed Rate Loans -These 2nd mortgages offer the best of both worlds. You have the benefits of low payments with interest only and the security of knowing that your interest rate is fixed.
Second Mortgage Guide offers comprehensive overview of various loan programs


Resource Tools

Loan Comparison Calculator
This calculator will help you to compare the total mortgage interest charges of 4 types of loans.

Find the best loan in your state

Free Finance Guides & Helpful Consumer Reports

Take advantage of our free guides and disclosures that help 1st time homebuyers.

Equity Credit Line Fed Tips
Home Purchase Guide
Understanding Credit Scores
ARM Rate Mortgage- Guide
Consumer Guide -Rate Locks

Speak with a loan officer live

Related Second Mortgage Pages:
No Documentation Second Mortgage | Second Mortgage Behind Neg Am Loan | Low Closing Cost Options | Preferred Second Mortgage Loans | Loan Specials | Fast & Easy 2nd Mortgages | Low Rate Options | Second Mortgage for Foreclosure Prevention | Refinancing | 80% | 90% | 95% | 100% Mortgage | 105% | 115% | Debt Consolidation | Second Mortgage Products | 125 Mortgage Piggyback
Apply Now | Disclosures and Terms | Home Loan Programs | Home Equity Rates | Best Mortgage Lenders | Contact Us
BD Nationwide Mortgage, 515 Encinitas Blvd. Ste 100, Encinitas, California 92024
Please be aware that this is not an advertisement for credit as defined by paragraph 226.24 of regulation Z. Nothing on this site contains an offer to make a specific home loan for any purpose with any specific terms. This is a web-site and no loans can be guaranteed as loans and rates are subject to change. Nationwide is affiliated with national lenders and a federally chartered bank located in Maryland licensed to offer home loans in all 50 states. Copyright 2001-2011 and Beyond, Nationwide Mortgage Loans - is a website and cannot make loans. All rights reserved.