The LARGEST online resource for all your home financing and relocation needs.
Find the best rates today!


FREE LOAN QUOTES AND INFORMATION 

June 24, 2017
   Home     News & Articles     Loan Programs     Debt Relief    Services Directory    

Is it Possible - To get a Second Mortgage with No Equity?

Get today's rates from 4 lenders.

Can you actually get a second mortgage with no equity? Is it possible to get a second mortgage against your home without having built up any equity? When should you get a second mortgage if you have no equity?

You can get a second mortgage with no equity. It is referred to as a 125 second. This is when they use 125% of the value of your home to get you the financing you need. Usually you have to have a good credit rating and a low debt to income ratio in order to get a 125 second mortgage.

Get a Second Mortgage today!

A second mortgage is what I refer to as a band aid loan. This is a loan that is used to temporarily fix a situation until a better solution can be found. You should never get a second mortgage when you can refinance your first mortgage. When you have already done this and used up 100% of the value you have no choice, but to take out a second mortgage.

When you take out a second mortgage for 125% of the value of your home you need to have a plan. You need to have a plan that will allow you to get through the desperate time that you are in, and come out in a better place. You want it to only be temporary. It is not a good thing to get used to having your home financed at more than it’s value.

Use this advice in order to make a sound decision in your financial situation. Remember that even when you are desperate you still need to compare rates and fees in order to get the best deal possible.




Leading Lenders: Ditech | Ameriquest | Washington Mutual | Countrywide | HomeLoanCenter | BankRate | LendingTree | American Mortgage | Ameriquest | GMAC | Sallie Mae | Capital One | Bank of America | Quicken Loans | Wells Fargo | WAMU