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When is getting a Second Mortgage the best option for you?
When getting a mortgage you will want to know all your options? And of course you want to make sure you are choosing the best mortgage for your needs. Many times I hear that other banks do not offer 2nd mortgages or that they do not exist. I am here to say they do exist and to explain when getting a 2nd mortgage could be best for you.
A jumbo loan is considered any conventional loan with a loan amount over $417k. So what do you do if you loan amount is over $417k? You could get a Jumbo mortgage, but the rate for a Jumbo Mortgage is usually .75% to 1% higher then a normal loan. But if your total loan amount is small enough you can split the loan into 2 loans. You can keep the first loan at $417k and get a 2nd mortgage for the difference. As an example, you have a $500,000 loan. Your rate could be 6% on a Jumbo loan. Or your could do 2 loans, one at $417k and a 2nd mortgage of $83k with a rate of 7.5%. The option of 2 mortgages would save you about $180 a month.
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