Refinance or Second Mortgage? Combining 1st & 2nd Mortgages Together - 0 views
started by Jefferson Pope on 08 May 12
started by Jefferson Pope on 08 May 12
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Heron Form Estates in Virginia Shore, VA is a beautiful upscale course neighborhood surrounded by large custom homes.
The homes located in Heron Ridge Estates are relating to the golf course or located across the street from the Fred Adults designed 18 hole service. Homes boast square video clips from 3000 to across 5000. Homes sold in 2007 ranged from $600, 000 to over $840, 000.
Heron Ridge Estates is set to Sandbridge Beach only 15 minutes away, the Virginia Beach oceanfront resort area approximately 20 minutes distance, in addition to a large variety of shopping nearby at Red Mill Commons. Also, upscale communities such as Ashville Park is just minutes away.
Near by military installations include Dam Neck of the guitar and Oceana Naval Surroundings Station in Virginia Beach, VA
Information and facts:
Elementary: Princess Anne Elementary
High school: Kellam High School.
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I had a recent conversation with one of my clients, Mr. Jackson, who is a financial savvy homeowner from Virginia Beach, VA. He asked me an interesting question that I wanted to share with you, because it seems being a common dilemma for homeowners in most states.
What the most effective solution for refinancing my first & second mortgage loans? Mr. Jackson elaborated, "I present an 6% 1st mortgage which has a balance of $255, 000, another mortgage at 14% with a balance of $52, 500. We did a 125% second mortgage to pay off some credit cards. Easily add the loans jointly, we exceeded our residences equity, as the property was appraised at $280, 000. We are satisfied with the 2nd mortgage rate, but we wished to lower the rate relating to the second mortgage. A several years have passed since we took out the next loan back in 2002, and importantly our home's cost has increased to approximately $325, 000. " Your dog continued, "Should I refinance the other by itself and attempt to get a lower charge, or should I refinance the 1st and 2nd mortgage together for one mortgage payment? "
Wow, what a good issue. I praised my client for consolidating his credit card debts with a permanent rate loan. He was very content with his monthly savings along with the 125% loan and since the device exceeded his property cost, he did not consider refinancing that loan until neighbor hood housing fees went up significantly. Now that his house has increased its value it would appear that his combined loan to help value was under 100%. His refinancing options become much greater along with the increased equity from your home appreciation.
We asked Mr. Jackson a few pre-determined questions so I could help him find the best solution. How is ones credit? Do you know your credit score? Is there a pre-payment penalty on your second mortgage?
Does your first mortgage possess a fixed interest rate?
Fitzgibbons answered quickly: 689 credit score no pre-payment penalty after three years, and his 1st mortgage is at 6% with a 31 year fixed rate.
Combining first and second mortgages into one loan can be challenging, but sometimes it's wise financially as well as being practical. In Jackson's condition, the best option has been to leave his primary mortgage alone, and simply refinance this 125% home equity loan using a 95- 100% second mortgage to reduce his monthly payments. mortgage Virginia Beach, mortgage Virginia