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| tcycmc |
 Posted: Thu Feb 10, 2005 3:30 pm Post subject: We have a second mortgage and hate it |
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New Poster
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| Did we make a mistake in getting a line of credit. We did it to save PMI. |
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| trixiezzz |
| Posted: Sat Feb 19, 2005 6:12 am Post subject: |
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Investing Manager
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| The only thing is, that either way you are essentially more in debt ~ and own a smaller percentage of your house. The banks own most of it. So, I'd think the good thing to do would be to work to pay off that 2nd as quickly as possible, then you still get to enjoy no PMI and have a higher equity in your house. |
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| JoiseyFamily |
| Posted: Sat Feb 19, 2005 11:10 am Post subject: |
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Investing Associate
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| No, you didn't make a mistake. The PMI goes to an insurance company and is not that easy to go away. The money is just gone. With a second you are paying interest on your home, and getting a tax deduction to boot. Eventually you will pay it off. It is much better than PMI. |
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| paula0000 |
| Posted: Sat Feb 19, 2005 3:09 pm Post subject: 2nd mortgage... |
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Investing Manager
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| not to jump in on your post but what's the difference between a home equity soan and second mortgage? |
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| mrsboz |
| Posted: Sat Feb 19, 2005 4:17 pm Post subject: |
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Investing Sr. Associate
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| My friend did this. She said that the rate was better and that she was going to pay it off as soon as she could. |
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| lmountford |
| Posted: Sun Feb 20, 2005 4:16 am Post subject: |
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Investing Sr. Associate
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Hi,
I'm sorry to sound ignorant, I'm from the Uk could someone please tell me what PMI is? Many Thanks,
Linda Mountford |
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| JoiseyFamily |
| Posted: Sun Feb 20, 2005 1:43 pm Post subject: |
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Investing Associate
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Ok, a Home Equity Loan is a fixed loan from the bank. It is for a set number of years, and has a fixed interest rate. That is your standard second mortgage.
You can also get a Home Equity Line of credit. You now have a credit line you can borrow, usually with an adjustable interest rate. You can have on out there and never touch it, or use it when you need some extra cash.
PMI is Private Mortgage Insurance. If you don't have enough money for a down payment, some mortgage companies make you take out this policy so that if you default on your loan, they get paid. It can add a nice penny to your monthly payments. And it won't go away on its own. Once you have the equity you need in your house, you need to go to them and get them to lift it. |
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| kimber |
| Posted: Tue Feb 22, 2005 5:37 am Post subject: |
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Investing Associate
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| You need to pay off hte second mtg as quick as possible that will make a huge diffence. |
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| ladyelle |
| Posted: Wed Feb 23, 2005 9:44 am Post subject: |
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Investing Associate
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| no, you did not make a mistake. That is what what we did. |
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| chop456 |
| Posted: Wed Feb 23, 2005 6:03 pm Post subject: |
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Investing Sr. Associate
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| I think you did the right thing taking out the 2nd mortgage. Easier said than done, but concentrate on paying it down and things will look better! We are in the same boat as you and are working on making our payments more than the minimum... |
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