KB asked:


I am paying on a car loan and was wondering when applying for a mortgage loan can I borrow extra than what the home costs to pay off the car loan?

Dennis

Leslie Gonzalez asked:




Well, the field of investment and finance is really difficult to understand. You really need to work hard in order to become successful here. This article could certainly help you in understanding a few concepts of home mortgage. Further in this article we are going to talk particularly about the role of mortgage loan consultants. These loan consultants are really very important for you. Purchasing a home is an essential process of all our lives. So, you really need to make a sound decision when it comes to selecting a proper mortgage loan advisor.

Before delving further in to the topic, let us first understand a few important things regarding home mortgage loan advisors. Well, mortgage advisors are professionals who are legally trained for this field. You can simply rely on these individuals when it comes to your house mortgage options. These professional help you secure best possible deals in house mortgages. They also help you in bringing down the cost of mortgage. So, we can say that all in all they are extremely dependable options for you.

I would like to bring this to your knowledge that mortgage advisors really provide you a number of benefits. A good mortgage consultant utilizes his understanding and abilities to offer the most appropriate home mortgage to go well with a client’s private needs and requirements. The mortgage loan advisor will not though, manage the assembling of the credit and consequently the customer would require to contract straightforwardly with the banking institution to assemble the house mortgage. These consultants usually do not subsist single-handedly in this field.

Now, given below are some of the most important benefits of appointing a mortgage loan officer for your home mortgage.

1. These advisors take care of their client’s requirements moderately. They even sustain and notify the customer from preliminary enquiry all the time.

2. Mortgage loan consultants take time to put on thorough understanding of the client’s individual conditions and objectives.

3. These trained professionals offer unbiased, skilled, exterior inspection of home mortgage products.

4. These professionals and consultants can recognize the most probable mortgage lender in strange circumstances, thus preventing the requirement for numerous credit checks.

Besides, all these things loan professionals offer a knowledgeable examination on the lodging market in common. So, these are some of the essential things regarding mortgage home advisors. Make sure you read this article properly before appointing an advisor for your home mortgage. It could certainly provide you some assistance in this field.

Joann

C.L. Haehl asked:




Even when you already have a first and second mortgage on your home, you may want to secure a third mortgage. You may use the cash for some value-adding feature to your home, like a swimming pool or a new kitchen may be the reason. However, securing a third mortgage is not very easy.

A third mortgage loan stands subordinate to the first and second mortgage liens that exist. For this reason, it is very difficult to find lenders offering third mortgage home loans. The risk is much greater for the lender in case of a foreclosure. If the loan does get approved, which is difficult, it would be at a much higher rate of interest as compared to the earlier mortgages.

A third mortgage is a hard equity loan. The approval usually depends on the LTV or Loan to Value and SSR or Superior mortgage to Subordinate mortgage ratio.
LTV is expressed as a percentage of the present appraised value of the house, as against the total outstanding mortgage debt(s). Lenders expect the LTV for hard equity loans in the case of first mortgages to be sixty five percent and between fifty to sixty five percent, in the case of second mortgages. For third mortgages, it is anything between fifty to sixty percent.

The SSR is calculated by dividing the amount of the superior mortgage loan amount by the amount of the subordinate mortgage and expressed as a ratio between the two. For example, if the superior mortgage were for $100000 and the subordinate mortgage for $25000, the SSR would be 4:1. For hard equity lending, the SSR is usually in the range of 1:1 – 7:1. With a low LTV and SSR, a third mortgage loan may possible.

In a foreclosure proceeding, the first mortgagee is given preference over the subordinate/subsequent mortgagees as a general rule. This means that the entire debt of the first mortgagee is first satisfied, after which any remaining amount is applied towards the debt satisfaction of the second mortgagee. If anything is left after that, only then is the third mortgage paid off.

Bill