3rd Mortgage
Hi....is it possible to take out a 3rd mortgage? We have a $175,000 first and a $59,000 second--house valued at $340,000--good to fair credit--want money to invest in more real estate--please advise. thanks
You might want to try a local bank. They will likely give you $38,000 as that would be 80% LTV on your property.
Another option is to refinance the 2nd mortgage from $59k to $97k.
hi, me again...thanks for the reply...as far as refinancing a 2nd morgage..how does that work?? We are locked in at a
6% APR...does refinance mean we lower the APR which is this case I don't think is applicable since we have a super low one or do we cash out equity in the loan...I am so confused.
I'd talk to a banker...I wouldn't go after a 3rd, I'd refinance the 2nd. If its at 6% it must have done recently? Why didn't you refinance the 1st instead of adding a second?
me again....we took out a 2nd AND refinanced the first about a year and a half ago---the money was used towards a rental property...now we are in the market for more property
To answer the questions...
1. You can get a third. Not all lenders will consider it. The rates are likely to be higher then a 2nd.
2. You can replace the second. You would get a new second and part of the funds would be used to pay off the existing 2nd. Similar to when you refinanced the 1st back a year+ ago.
3. You could get a HELOC which is a line of credit. You would not need to draw down the funds until you were ready to use them. You could later have the upper limit raised if the property increases in value (and you have the income to support the higher payments).
New question. Have you taken a hard look at what happens if you max you leverage and then the market slows down, stays flat or goes down? You might find yourself an unhappy seller if you max out the leverage and things do not go up as fast as you are expecting.
Leverage is a two edged sword.
John
[addsig]
Take John's words above to heart.
Looking thru some of your other posts and reading between the lines (or the posts as the case may be), you have a major problem brewing with your finanicals. This definitely seems like an area that you need to get under control before you start buying more properties and especially before you start maxing out your current properties.
Roger