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How do you word a contract for a personal loan that is to be considered a second mortgage?
Wiki User
∙ 17y ago
Honestly? Spend the money to have an attorney do it right. You will probably screw it up. I see it happen all the time. Look at the amount you are loaning. If you cannot spend 10-20% to hire someone who knows what they are doing, you shouldn't be loaning the money. The key is not the wording of the agreement. What gives a mortgage its main effect is recording with county's recorders office. You have to give notice and put all other potential lienholders on notice that you have a mortgage.
Wiki User
∙ 17y ago
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What is the difference between refinancing and a second mortgage?
Refinancing is re-assessing the terms of your current mortgage. You are capable of refinancing any loan at any time whether it is a home, auto or personal loan. A second mortgage is a mortgage in addition to your primary note. If you obtain a second mortgage you will be liable to pay two monthly mortgage payments.
What are the benefits of using a 2nd mortgage calculator?
A second mortgage is when, already having a mortgage, you take out a second loan/mortgage secured on the property. This is possible if you have positive equity. A second mortgage calculator will give some indication about how much might be able to be borrowed without having to actually approach a money lender and give them your personal details.
Does a second mortgage in the UK typically come with a higher or lower interest rate than the first mortgage?
A second mortgage in the United Kingdom typically comes with a higher interest rate than the first mortgage. This is because the lien is considered to be less secure.
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".
Why might a homeowner take out a second mortgage?
A homeowner take out a second mortgage if they are struggling to pay off their first mortgage. You can read more at www.bostonapartments.com/mortgage/second-mortgage/second-mortgage.html -
Can you get a second mortgage with only one signer?
You need to go and see a mortgage broker. However if there is already a mortgage on the house with two signatories, it is unlikely that you will be able to get a second mortgage without the agreement of the second signatory as it will affect their primary mortgage. It will also depend on the property deed. If the land is titled to a single person, that person can obtain a mortgage. Note that a spouse is considered to be on the title even if it isn't printed there in most jurisdictions.
Is it possible for a first lien mortgage to be recorded in second lien position?
The only possibility I can think of is that one could have an unrecorded first mortgage or deed of trust. The second mortgage or deed of trust, if recorded, would be the first of record, and legally considered to be the first.
What steps must one take when refinancing a second mortgage?
To obtain a second mortgage you must apply for the loan just as you did for your first mortgage. You can apply with the same company as your first mortgage, or you can shop around, which is definitely recommended to ensure you are utilizing the best option possible, as loans have different rates and terms. This is considered a contractual lien against your home in the event you fail to keep up with the payments. If you are approved for the loan, you sign the contract, obtain the money and proceed with making monthly payments, or whatever you decide upon.
What are the benefits of getting a second mortgage refinance?
The main benefit of a second mortgage refinance is that it allows one to not have to create a new mortgage. Creating a new mortgage can be a hassle, which a second mortgage can alleviate.
What are the dangers of a second mortgage foreclosure?
The biggest problem with second mortgage foreclosures is that you can lose your home even if you are still current on your first mortgage. The second mortgage, if defaulted on supersedes you first mortgage.
What are the advantages of getting a second home mortgage?
A second mortgage allows the borrower access to money at an advantageous interest rate. It makes use of the equity built up in a home as collateral, which is considered a safer investment by lenders.
What is the statute of limitations on second mortgage in CA?
A second mortgage is not included in a Statue of Limitation law. Explain more about your first mortgage, and I will be able to tell you what will happen to your second mortgage.
