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Second Mortgage

rushingjr
Valued Member

Second Mortgage

Closed on our home August 2020.  Good deal, had to put $40k into it to make it livable.  Now we want to get a 2nd mortgage to pay off high interest debt/CCs, about $50-55k.  What bank/CU should we consider?  What else should we consider besides that?  Could that be done by New Year's?

SN: our mortgage is 2.5% FHA which has PMI for life.  I don't think a cash out refi would be a good idea right now.  But I'm open to being corrected.  

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CH-7-Mission-Accomplished
Valued Contributor

Re: Second Mortgage


@rushingjr wrote:

Closed on our home August 2020.  Good deal, had to put $40k into it to make it livable.  Now we want to get a 2nd mortgage to pay off high interest debt/CCs, about $50-55k.  What bank/CU should we consider?  What else should we consider besides that?  Could that be done by New Year's?

SN: our mortgage is 2.5% FHA which has PMI for life.  I don't think a cash out refi would be a good idea right now.  But I'm open to being corrected.  


What was the purchase price in August 2020?   What do you estimate the house to be worth now?    What is the balance on your current first mortgage?

Message 2 of 4
NC_Mtg_Loaner
Valued Contributor

Re: Second Mortgage

i wouldn't be surprised if you could refinance to a conventional loan today and eliminate the PMI or reduce it substantially because the money you put into the loan would've increased the value along with some market price appreciation--something for you to consider.

 

Heck, you might even be able to take some cash out to pay off/consolidate some of those debts.

__________________________________________________

Licensed NC Mortgage Loan Originator
Message 3 of 4
rushingjr
Valued Member

Re: Second Mortgage

$485k, worth btw $575-600k, balance $472k.

Message 4 of 4
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