Second mortgage loans are cool for debt consolidation and payoff

With the refinancing boom officially over, second mortgage loans are cooler than ever. Many homeowners have been blessed with low interest rates on first mortgage loans they choose to keep. The need for cash hasn’t gone away with the refinancing boom, so second mortgages and home equity loans will be the loans of choice for years to come. Anyone with a 30-year fixed rate loan below 6% should keep their existing loan intact and take out a second home loan if they need cash. The Federal Reserve has hinted that more rate hikes are on the way. So if you’re a mortgage broker or lender, it’s time to refresh your second mortgage product line because people still need access to cash and there’s no better way to do that.

Home equity loans to 125%

You don’t need equity, and with this loan program, you can exceed the value of your home by up to 125%! These 2nd mortgages are usually offered with a fixed interest rate for 15, 20 or 25 years. If you have credit card debt or high-interest loans, this is a great loan to eliminate compound interest and save money! Sandy Sarconi, Managing Director of IHE, stated, “There is no better way for a hard working family with no equity in their home to lower bill payments and get out of debt.”

* 2nd fixed rate mortgage

* No mortgage insurance at all

* No second mortgage

Second mortgages with reported income

More and more people are looking for reduced documentation loans. More and more people are becoming self-employed and many just like the lean process.

* Equity loans with reported income

* No income, no assets 2nd mortgages

* No income-tested home equity

* No Doc Equity refinancing

Second Mortgage Lines of Credit

Of course, interest rates are variable. Yes, the Fed has raised interest rates eight times in the last few years, but people love low payments that only interest loans offer. People also love the flexibility of only having to pay interest on the money you access. Where else can you keep money waiting without having to make payments until you spend cash!

* Interest payments only

* Home credit lines

In 2006, the often-timid second mortgage emerged from the shadow of the first mortgage to become the cool loan of choice.