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4 Reasons a 2nd Mortgage Maybe The Best Option When Buying a Home
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 loan 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 higher then a normal loan on a 30yr fixed rate. 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 home sales price, you could do a first mortgage at $400k(80%) and a 2nd mortgage for $75,000. Not only could your rate be higher with a Jumbo mortgage but they also require a larger down payment then convnetional loans. These two benefits make it a win-win ... more
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