What are the current rates for a 2nd mortgage.?
Question:
My house is worth $600000, I have $120000 in equity, I want to take out a 2nd mortgage for $55,000. I'd like to know the rates currently February 15, 2007.
Thanks
8.5 on a thirty year fixed. 2nd mortgages are high, depending on what your first mortgage rate is, you might be better off to do a cash out refi. It is easy to do the math on this just add it up over the term of your loan. Take the one that works best for you, don't forget that closing cost are based off of your loan amount, keep that in mind for your calculations, also keep an eye on your LTV (loan to value) don't go over 80% or you will have PMI
Assuming that you have good credit the rate will depend on the type of 2nd your looking for and your state.
If you're interested in a Home Equity Line of Credit (HELOC) then you're looking at Prime (8.25%) minimum. At that loan amount figure a 1/2 point add to the margin +/- so somewhere around 8.75% interest only.
If you're talking about a fixed 2nd then you are most likely in the 7.625% or slightly higher.
Closing costs on a 2nd are typically ALOT lower than a new 1st (refinance) since title and escrow is cheeper. Depending on the lender you go with many have a low or no closing cost option but will have a small early closure fee to reimburse them for their 3rd party costs of title and escrow. This is usually in the $500-$750 range if you close with in 3 years of opening the line.
I agree with the above poster however. You should look at what the payment with you existing 1st and a new 2nd will be and also find out what a cash out refinance will put you at. You may find that with a new refinance that you will pay yourself back for the closing costs and reap 20-25 years of overall lower payments. Really check this out... it can save you thousands per year in interest payments. You can go to my companies site for a mortgage calculator. Use this to see what your payments could be either way. No application required.
If you would to discuss your scenario in detail, drop me a line.
Kevin 866-562-6838 x 106
kruorock@firstratelending.com
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