I have debt that I want to consolidate into a home purchase, since I found a home that is priced well below appraised value. Since there is already equity is there a lender that will do a first mortgage and second at the same time? This would reduce my debt to income and put me into a better financial situation since I would only have one payment would be lower.
4 responses so far ↓
1 tapnet1
By getting a second mortgage you will be at a higher interest rate and introducing a 2nd payment, so it would be like having 2 mortgage payments. Albeit the 2nd one is probably much lower.
You should just negotiate a lower down payment and get a larger 1st mortgage.
I would consult a mortgage broker, it is much easier dealing with 1 broker then hunting for a lender. Let the broker do the neg’ing for you. They usually find a better rate anyway.
2 Moore
Home equity debt consolidation involves keeping the home as collateral. A home equity loan is a secured loan, as there is collateral provided against the loan. This is why the rate of interest offered for this kind of loan is quite low. A home equity loan for debt consolidationtaking the loan for debt consolidation, debtors must calculate all the expenses, charges and extra costs that may be associated with the loan.
3 acermill
Not going to happen these days. It’s next to impossible to find a lender who will grant a mortgage for more than the purchase price of the property.
4 mefuture
It is going to be tough to get more than the purchase price of the home. There are a few lenders who might be willing to lend 125% but the interest rate will be on the higher side.
You will not know for sure till you ask around and do your research. Use a site like Bills.com to get quotes from multiple lenders, that way you will know the chances of getting the kind of loan you are looking for.
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