Consolidating first second mortgages
FHA loans require mortgage insurance regardless of amount of equity in the home.One other option homeowners have is to not pay off the second mortgage when they refinance into an FHA loan.If the homeowner purchased a home less than 12 months before the new loan's closing, the lender must value the home of the lesser of the appraised value or the original sales price.Many homeowners obtain a first and the second mortgage when they purchase a house to avoid paying mortgage insurance.
Second mortgages are a little harder to obtain than first mortgages.This program allows homeowners to consolidate their first and second mortgages, as long as a second mortgages is at least 12 months old or was used to purchase a home.The homeowner also finances the closing costs and any prepayment penalties charged by the current lenders.Second home loans usually come with slightly higher rates than they would for new purchases (this is where we come in), however in the case of using a 2nd mortgage to consolidate your debt you would benefit from lower interest rates and lower monthly payments. Applying with Loans Canada isn’t like applying with a bank or any other conventional mortgage broker.Loans Canada is a national financial services network and as such benefits from volume discounts, access to the largest array of lenders and a heck of a lot more – and we leverage of our advantages in the favor of our amazing customers.
Conventional mortgage lenders require homeowners obtain mortgage insurance when the first mortgages balance exceeds 80 percent of the home’s value.