Question:
We use National City and GB Home Equity for home equity lines of credit and 2nds. Both are reputable companies. http://www.ushomeloan.com/ – Hide quoted text — Show quoted text -> >> I recently bought a house, with an 80% first loan from Wells Fargo > >> and > >> a 10% second loan with Wells Fargo (an 80/10/10 loan as they say). > >> At the time, Wells Fargo said I could immediately do an additional > >> equity loan, but once the loan was secured and the house was bought > >> they declined the equity loan (they only lend to 90% and I have no > >> equity above this yet). > >> A mortgage broker suggested that I look at changing my second loan > >> to > >> National City Mortage. They would take over the second 10% loan > >> from > >> Wells Fargo and provide me with an additional 5% equity line of > >> credit, going to 95% loan-to-value. > >> Does anyone see a catch here? I’ve never heard of National City > >> (I’m > >> in California). > >> Thanks > >> MS
Response:
I have a e-business that offers Mortgages, loans and credit cards. Please take a look. www.applyforloansonline.financialcircuit.com – Hide quoted text — Show quoted text – > I recently bought a house, with an 80% first loan from Wells Fargo and > a 10% second loan with Wells Fargo (an 80/10/10 loan as they say). > At the time, Wells Fargo said I could immediately do an additional > equity loan, but once the loan was secured and the house was bought > they declined the equity loan (they only lend to 90% and I have no > equity above this yet). > A mortgage broker suggested that I look at changing my second loan to > National City Mortage. They would take over the second 10% loan from > Wells Fargo and provide me with an additional 5% equity line of > credit, going to 95% loan-to-value. > Does anyone see a catch here? I’ve never heard of National City (I’m > in California). > Thanks > MS
Response:
Why not post a few more times? JK – Hide quoted text — Show quoted text – > I have a e-business that offers Mortgages, loans and credit cards. > Please take a look. www.applyforloansonline.financialcircuit.com > I recently bought a house, with an 80% first loan from Wells Fargo > and > a 10% second loan with Wells Fargo (an 80/10/10 loan as they say). > At the time, Wells Fargo said I could immediately do an additional > equity loan, but once the loan was secured and the house was bought > they declined the equity loan (they only lend to 90% and I have no > equity above this yet). > A mortgage broker suggested that I look at changing my second loan > to > National City Mortage. They would take over the second 10% loan > from > Wells Fargo and provide me with an additional 5% equity line of > credit, going to 95% loan-to-value. > Does anyone see a catch here? I’ve never heard of National City > (I’m > in California). > Thanks > MS
Response:
National City is a large bank with several divisions… They have a Construction Loan Product as well as several Mortgage Companies among their holdings. I always offer my borrowers a HELOC when they close on their Purchase loans. Other than being a little slow due to volume, I think they do a good job. Regards, William Stouffer www.loans-made-easy.com
– Hide quoted text — Show quoted text -> Why not post a few more times? > JK > I have a e-business that offers Mortgages, loans and credit cards. > Please take a look. www.applyforloansonline.financialcircuit.com >> I recently bought a house, with an 80% first loan from Wells Fargo >> and >> a 10% second loan with Wells Fargo (an 80/10/10 loan as they say). >> At the time, Wells Fargo said I could immediately do an additional >> equity loan, but once the loan was secured and the house was bought >> they declined the equity loan (they only lend to 90% and I have no >> equity above this yet). >> A mortgage broker suggested that I look at changing my second loan >> to >> National City Mortage. They would take over the second 10% loan >> from >> Wells Fargo and provide me with an additional 5% equity line of >> credit, going to 95% loan-to-value. >> Does anyone see a catch here? I’ve never heard of National City >> (I’m >> in California). >> Thanks >> MS
Response:
> Answers to a few questions: > Terms of mortgage: current 1st mortgage is 5.90% fixed 3-year (then > ARM) and the 2nd mortgage is 6.95% for 15-years. > Why would you take on more debt: With interest rates this low, you > don’t have to be a brainiac to realize that debt is cheap, and if you > have cash to cover this, as I do, it’s a rational decision to take out > an equity line of credit for home improvements at 5%-6% and claim it > as a tax deduction than just using your existing cash in the bank or > other investments.
there must be something I’m missing here. Equity lines are either variable rate or cost and arm and a leg in interest where I am. While it may be low now, it won’t stay that way if you go with the variable. You get the tax deduction, but that only means that you’re not paying taxes on the interest you pay, you’re still paying the interest. Why do you want to? You’re taking on more debt, meaning you have bigger payments, and more interest accrual. Why not pay some of the debt off first? The interest on your ARM will go up one way or the other, so you might as well pay off as much of it as you can while it is low. What am I missing? (maybe I should admit that I don’t believe in being highly leveraged. I prefer being safe.)
Response:
Answers to a few questions: Terms of mortgage: current 1st mortgage is 5.90% fixed 3-year (then ARM) and the 2nd mortgage is 6.95% for 15-years. Why would you take on more debt: With interest rates this low, you don’t have to be a brainiac to realize that debt is cheap, and if you have cash to cover this, as I do, it’s a rational decision to take out an equity line of credit for home improvements at 5%-6% and claim it as a tax deduction than just using your existing cash in the bank or other investments. – Hide quoted text — Show quoted text ->….provide me with an additional 5% equity line of >credit, going to 95% loan-to-value. >Does anyone see a catch here? > Yeah, you’re already in the house, why do you need to take on even > more debt so soon? Sounds to me you’re overextended. If something > changed in your life and you needed to sell, you’d be at great risk of > owing more than you’d net for the place. Appreciation can go the > other way, too. Even in California. > -v.
Response:
have you tried getting an equity line from another bank?
– Hide quoted text — Show quoted text -> I recently bought a house, with an 80% first loan from Wells Fargo and > a 10% second loan with Wells Fargo (an 80/10/10 loan as they say). > At the time, Wells Fargo said I could immediately do an additional > equity loan, but once the loan was secured and the house was bought > they declined the equity loan (they only lend to 90% and I have no > equity above this yet). > A mortgage broker suggested that I look at changing my second loan to > National City Mortage. They would take over the second 10% loan from > Wells Fargo and provide me with an additional 5% equity line of > credit, going to 95% loan-to-value. > Does anyone see a catch here? I’ve never heard of National City (I’m > in California). > Thanks > MS
Response:
>how much was the house? most people put down 20% or more using one >mortgage.
And lots and lots of people borrow more than 80%. But rather than one big loan that requires PMI, they use the the 80/10 or 80/15 system. The second loan has a higher rate, but its a small loan so the net effect is a savings. Surely you know that? -v.
Response:
>….provide me with an additional 5% equity line of >credit, going to 95% loan-to-value. >Does anyone see a catch here?
Yeah, you’re already in the house, why do you need to take on even more debt so soon? Sounds to me you’re overextended. If something changed in your life and you needed to sell, you’d be at great risk of owing more than you’d net for the place. Appreciation can go the other way, too. Even in California. -v.
Response:
how much was the house? most people put down 20% or more using one mortgage.
– Hide quoted text — Show quoted text -> I recently bought a house, with an 80% first loan from Wells Fargo and > a 10% second loan with Wells Fargo (an 80/10/10 loan as they say). > At the time, Wells Fargo said I could immediately do an additional > equity loan, but once the loan was secured and the house was bought > they declined the equity loan (they only lend to 90% and I have no > equity above this yet). > A mortgage broker suggested that I look at changing my second loan to > National City Mortage. They would take over the second 10% loan from > Wells Fargo and provide me with an additional 5% equity line of > credit, going to 95% loan-to-value. > Does anyone see a catch here? I’ve never heard of National City (I’m > in California). > Thanks > MS
Response:
>how much was the house? most people put down 20% or more using one >mortgage.
In California that is rare. I was looking at public data, and most mortgages were made with *exactly* 20% down. I would estimate that only 1 in 6 or 8 put down more than 20%. I suspect that because the figures often came to *exactly* 20% of the purchase price, many of the people putting down 20% in reality have a 80/10/10 or 80/15/5 loan (the second mortgages don’t show in the records). Dimitri
Response:
– Hide quoted text — Show quoted text – > I recently bought a house, with an 80% first loan from Wells Fargo and > a 10% second loan with Wells Fargo (an 80/10/10 loan as they say). > At the time, Wells Fargo said I could immediately do an additional > equity loan, but once the loan was secured and the house was bought > they declined the equity loan (they only lend to 90% and I have no > equity above this yet). > A mortgage broker suggested that I look at changing my second loan to > National City Mortage. They would take over the second 10% loan from > Wells Fargo and provide me with an additional 5% equity line of > credit, going to 95% loan-to-value. > Does anyone see a catch here? I’ve never heard of National City (I’m > in California).
You didn’t post the terms, so it is kind of hard to see where there might be any catches. Go find out the details, and post again. -john- — Newave Communications http://www.johnweeks.com
Response:
I recently bought a house, with an 80% first loan from Wells Fargo and a 10% second loan with Wells Fargo (an 80/10/10 loan as they say). At the time, Wells Fargo said I could immediately do an additional equity loan, but once the loan was secured and the house was bought they declined the equity loan (they only lend to 90% and I have no equity above this yet). A mortgage broker suggested that I look at changing my second loan to National City Mortage. They would take over the second 10% loan from Wells Fargo and provide me with an additional 5% equity line of credit, going to 95% loan-to-value. Does anyone see a catch here? I’ve never heard of National City (I’m in California). Thanks MS
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