loans






 

Question by  tahorton (12)

Is it worth purchasing a second mortgage with 100% LTV?

 
+7

Answer by  Jimbob (2275)

I would say yes as this is a good rate but you have to be able to make the payment on the pay out.

 
+7

Answer by  Latin4 (11170)

At time with the ecomony the way it is, I wouldn't take out any second mortage. Sometimes we have to do without. It would be great if your house would be paid off and you'd feel lucky to have a roof over your that paid for.

 
+6

Answer by  mammakat (11147)

Well, this certainly means that you may be able to borrow more or better, but you have to look at the long run- what are your interest rates, is there a bubble in the loan, and remember, you are only incorporating your first debt into your second, so you have to look at monthly payments and feasibility.

 
+6

Answer by  mb (5482)

This is a complex issue as a lot of people recently lost their houses through over speculation. However, if you have steady income then yes its a good idea. 100% loan to value loans are only for the most credit worthy, you get the best possible bang for your buck (almost not interest).

 
+5

Answer by  YourMoneyAnswerGal (654)

The only reason to take on a second mortgage would be to make an improvement to the property. It's important to maintain at least 80% LTV. For a second mortgage it is best to maintain at least 70% or even 60% LTV. The reason is the preserve the ability to pay off the loan if the property must be sold.

 
+2

Answer by  princesa (73)

Purchasing a second mortgage is a decision that should not be rushed into lightly. It should be made with advice from a trusted financial expert.

 
You have 50 words left!