MortgagesUndressed

I speak of second mortgage. It is also called a line, line of credit, etc.

If you already own the home. If possible, always get it from your current bank, a local bank, or a credit union. Why is easy. It’s cheaper. I have never seen an exception to this. Reasonable not great credit is needed at a bank or credit union. You will probably find the bank you have your accounts with very cooperative, as they have a history on you and will want to keep you as a satisfied customer.

If you are purchasing and doing a combination first and second to save mortgage insurance you should always use your loan officers resources. No exceptions should be made to this. Why? Your purchase has a deadline when you must close. Coordinating these two loans will be vital. Please follow my advice here, make no exceptions. If your local bank is enticing you with a better rate on the second, forget it.

There is nothing wrong with going back after closing and replacing the second, just make certain you can do that without a pre-payment penalty.

Larry Cragun