Standalone Second Mortgage
Standalone second mortgage products offer a convenient way to take equity out of a property or provide financing in a refinance or debt consolidation. For difficult to verify income, stated income standalone second mortgage products are available. Interest only standalone second mortgage products will lower your payment. Second mortgage products carry a fixed interest rate and amortization periods range from 5 to 20 years with a new standalone second mortgage product amortized over 30 years with a balloon due in 15 years. The longer amortization period lowers your standalone second mortgage monthly payment significantly. If you have a great rate on your existing mortgage, a standalone second mortgage allows you access to your home equity.
Standalone Second Mortgage Debt Ratios
Debt ratios are determined by dividing your total monthly debt by your monthly pretax income. Our programs will allow up to a 45% total debt ratio. If you are refinancing, one effective strategy to get your ratio down is to pay off debt at closing. Debt paid at closing is not counted in the ratio calculation.
Standalone second mortgage products can be arranged for up to 125% of the value (including your existing first mortgage) of the property. Interest rates generally increase any time your combined loan to value (CLTV) exceeds 90%. However, high CLTV rates are generally lower than other consumer or credit card rates and the longer amortization schedule can significantly reduce your monthly payment. I have had clients cut their monthly payments in half using their home equity instead of paying high credit card payments. This approach is referred to as a debt consolidation standalone second mortgage.
Learn more about standalone second mortgage closing costs
Please feel free to email with any questions about a standalone second mortgage.
We have a page on how to calculate your standalone second mortgage qualification ratios.
We have a page on standalone second mortgage documentation requirements.
Learn about the differences between home equity loans and lines
We offer you the ability to qualify and close into several unique programs which accommodate borrowers with non traditional income or asset situations.
* I have included a section on the new Cash Flow ARMS. A LIBOR based product which gives you complete flexibility in managing your mortgage.
As a Certified Mortgage Planning Specialist, I offer an analysis of your situation today can make suggestions on how small changes in how your consumer and mortgage debt is structured today can have a life changing effect in the years to come. Read more about this free, no obligation service.
Prequalify for your Standalone Second Mortgage