Should I Get A Second Mortgage Or A Bridge Loan?

For you, the borrower, placing a new loan behind the first mortgage boss will be critical in terms of money and time. Should it be a second mortgage, home equity loan, home equity line of credit or a short-term bridge/swing loan. Choices, choices. In order to sort out the mystery and confusion, you don’t need a Wizard, you need information on what loan would best fit your goals and your overall financing plans.

Where do I get information on a second mortgage or bridge loan?

Right here. A bridge loan is nothing more than short-term financing where the lender expects payment in full ASAP. That loan term could be four weeks or eighteen months or somewhere in between since the lender likes to turn his cash over – ostensibly to cut a better deal with another borrower. Loan to value on your bridge loan, when combined with the first TD, is usually 75 percent on residential and 65 percent on commercial property.

Second mortgage information

Choosing a second mortgage instead of a bridge loan is that lovely word: TERMS! With the right lender, your second mortgage could have 15 year terms, a fixed interest rate between 8 percent to 10 percent and up to 80 percent loan-to-value.

Any other options available?

You should inquire about not using a second mortgage or bridge loan, and opt for a home equity line of credit. Up to 15 year terms, 6.150 fixed interest rates and 90 percent LTV depending on your existing equity and credit history. Also, consider not using a bank or private lender. If you’re ex or current, Navy, Air Force, Marines, Army, Coast guard, try NFCU.org

Related posts:

1. What Are Bridge Mortgage Loans?
2. Is It Best To Go Long Term Or Short Term With Mortgage Rates?
3. Why Should I Refinance My Mortgage?
4. How Are Home Mortgage Rates Determined?
5. What Is Home Mortgage Insurance?