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The title has nothing to do with the loan. The loan will need to be refinanced using a different cosigner or only the primary borrowers.

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โˆ™ 2006-07-10 15:59:58
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Q: How can one remove a cosigner from an equity loan if the cosigner is not on the first mortgage title?
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What if you pay your first mortgage but not your home equity?

If you have a first mortgage and a home equity mortgage, the home equity mortgage is a second mortgage. If the home equity mortgage is not paid, the lender can foreclose and take possession of the property subject to the first mortgage. The home equity lender can pay off the first mortgage and keep any excess proceeds from a sale.

Can a home equity line of credit be used to pay down the principle and remove private mortgage insurance on a first mortgage?

Yes, assuming you have enough equity in the home to get a line of credit. But, if you had enough equity there should not be any PMI. 4lifeguild

What happens to your home equity line of credit when you default on your home loan?

If you mean that there was a mortgage recorded prior to the home equity mortgage and the first mortgage is foreclosed then the equity mortgage would be wiped out by the foreclosure. If you default on a home equity mortgage then the bank will foreclose and take possession of your home.

Can you have 2 mortgage loans through same mortgage company?

Yes. Your mortgage company may hold your first (or primary) mortgage as well as a second which may be represented as a home equity loan or a home equity line of credit.

How soon after buying a home can you obtain a home equity loan?

You can get a home equity loan immediately. In fact, some lenders are packaging home equity loans or credit lines as a combo with the closing on the first mortgage. Of course, to get a home equity loan you have to have some home equity...i.e. a market value greater than the first mortgage.

What happens if you default only on your home equity line but not your first mortgage?

The second mortgagee can foreclose and take possession of your property subject to the first mortgage.

How can one check their home equity status?

The first thing to do when checking a home equity status would be to get in touch with your mortgage lender. They will be able to inform you about how much equity you have and what you can do with it.

Can a primary mortgage be classified as a home equity loan?

Yes. There are 2 ways to refer to a mortgage loan: 1) Lien position on the title (1st mortgage, 2nd mortgage) 2) Product type (loan type: 1st mortgage, home equity loan, home equity credit line) If you only need to borrow $10,000 for example, this will not meet the minimum loan amount for a first mortgage with most lenders. Therefore you may obtain a "home equity loan" which is more often used as a second mortgage, but it will be the primary loan on the home.

What exactly is an equity fixed home loan?

An equity fixed home loan is a home equity loan with a fixed interest rate. These are used to repair a roof or fix a septic system. The homeowner takes this loan out in addition to the first mortgage and the equity fixed home loan is often referred to as the second mortgage.

Can you have 2 first mortgages on 1 property?

No, the second mortgage would be called a home equity loan and usually interset rates are higher. If a second loan (mortgage) is needed, it may be better to add it to the first and refinance, assuming you have equity in the home to do so

What is a seller's second mortgage?

The seller assigns keeps the first mortgage in his name, the buyer makes payments to the seller to cover the first mortgage and the sellers equity. It's sometimes called "seller financing" or "land contract".

Best available equity home mortgage, worthwhile.?

In order to qualify for a home equity mortgage you must first have a line of credit open with your home. This usually entails the home owners owing less than 80% of the original mortgage. The rates range from 2.78% to 4.27% for a $10,000 equity loan. Contact your bank to see if you would qualify.

Is the monthly payment for a home equity loan added to the existing mortgage?

It really depends on what type of home equity loan you do and which instituion you do it thorugh. I would check with the orinating institution. Unless I misunderstand your question. Typically a home equity loan is completely separate and has no effect on your first mortgage.

How soon can you have the cosigner removed from a mortgage?

As soon as you are able to refinance the mortgage in your own name. Some lenders (and I mean very few) will be able to remove a co-borrower by having you fill out a piece of paper (I forgot what it is called). So ask your current lender first. Keep in mind this will not remove them from Title...that can be done with a Quit Claim Deed at a Title Company.

Can you pay off first mortgage using home equity line of credit?

Yes. If you qualify for an amount high enough to cover the first mortgage. You should make certain it will be to your benefit.

Is tax on continuing a second mortgage deductible after filing for a first foreclosure?

Even if you have had a foreclosure, tax on a second mortgage or home equity loan is still deductible.

Should you get a second mortgage or a home equity line of credit?

Mortgage loans and home equity loans are two different types of loans you can take out on your home. A first mortgage is the original loan that you take out to purchase your home. Second mortgage means cover a part of buying of your home or to cash out some of the equity of your home. It is important to understand the differences between a mortgage and a home equity loan before you decide which loan you should use. Both types of loans have the same tax benefit since you can deduct the interest on each.

Can a Home equity loan be a first mortgage?

Your mortgage company will want its loan in first place, because they want to be the first to be paid in case of default. If you get a HELOC on a home that is paid off, then it is in first place. Some states, like Texas, also restrict the loan to value on any home equity loan- currently to 80%.

How does a second mortgage appear on your original mortgage?

When a person or family buys a home with a mortgage, it is registered with the county or city registry as the first mortgage. The first mortgage is paid off first in whatever case. A second mortgage on the other hand is a secured home equity loan against the same property. If you default on your mortgage payments the lender has to wait after the till the first mortgage is paid. For this reason the second mortgage rates may be higher. Second mortgages are usually smaller loans.

What happens when you remove a cosigner from your house deed?

First and foremost, you cannot remove a "co-signer" of a mortgage from the obligations of the mortgage. They may release their interest in the property by signing a deed but that doesn't release them from their obligation to pay the mortgage.This type of situation often happens in a divorce when the parties have a poorly drawn agreement that one will convey their interest to the other and the other will take responsibility for the mortgage. It doesn't work that way legally. The bank is not bound by a divorce agreement. The mortgage must be paid off and refinanced in the name of the person who will take sole ownership.

Can you get a home equity loan if you have a lien on your property?

Most home equity loans take 2nd lien behind the first mortgage. I'm going to assume that you have a first mortgage with a lien behind it and are seeking a home equity loan. If you want your home equity loan to close, you'll either need the existing 2nd lien to subordinate to your new home equity line of credit. In other words, it would have to allow the home equity line to be second and it would have to move from 2nd to 3rd. Without their consent in doing this, you'd have to pay them off to get the home equity line of credit.

What is piggyback mortagage?

A type of mortgage where a second mortgage or home equity loan is taken out by a borrower at the same time the first mortgage is started or refinanced. Piggyback mortgages are frequently used to lower the loan-to-value ratio (LTV) of a first position mortgage to under 80%, thereby eliminating the need for private mortgage insurance (PMI).

What are some options for 2nd mortgage loans?

There are two major options for 2nd mortgage loans. The first is a Home Equity Loan, which is the traditional second mortgage and involves getting a fixed sum of money. The second option is a Home Equity Line of Credit and instead of a fixed sum of money, you get a credit line with a fixed limit.

How does a home equity loan work?

It's like a second mortgage on your home. They would evaluate the worth of your house minus the amount owed on the first mortgage and loan you a percentage of the difference. You would have to pay two mortgage payments.

Can you get a home equity line of credit with instant equity as collateral?

No. Any home equity line uses the underlying property as collateral. A home equity line will only be extended if the following are all true: * The valuation of the home suggests that there is equity left over after meeting the obligations of the primary/first mortgage * There is not already a second mortgage outstanding * The credit worthiness of the borrower is good (score of 720+) Instant equity is usually only generated through the refinance of a house (revaluing the home upwards from where the valuation was when obtaining the first mortgage). At that time, one may cash out part of that equity increase and apply the amount cashed out to the new loan. The popping of the housing bubble has greatly reduced the number of refinances that provide for cash out.