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2nd mortgage

Do a home equity line and get the lowest interest rate you can get. It's possible to get prime plus zero if your credit is good enough. That way if nothing happens, you haven't spent a dime. But if you do use the mortgage, only use it for a real estate purchase. That way you always have something to show for it.
I did the same thing about 15yrs ago to buy 100ac. of land. I never had a regret. Plus if it's you're only mortgage, you can wright off the interest on your taxes anything under $100k I think it is.
The other key factor is interest rates are low right now and I have a feeling they could go up. So if you did the equity line, it's something to think about. It worked out for me though.
 
I am a mortgage professional and I say go with a HELOC. Only use it when you need it. However, there are costs associated with a true HELOC against your home. You can expect to pay closing attorney fees, state/county taxes and recording fee plus the banks fees. Most likely an appraisal as well. So, to have access to a larger sum of money, it will cost you about $1,500 upfront. I would use this if you already knew what you were going to use the funds for and in a short amount of time.

If you do not have a property/investment picked out already, then just wait until you have picked something out. I can give you the contact info for my HELOC person who does good work and lends up to 90% of your homes current value. The higher the Loan to Value (loan vs. appraised value), the higher the rate (prime index plus a margin), along with your credit scores, etc.

I help people access their available equity on their departing residences every month. The trick is to secure the HELOC BEFORE you lists your home, if applicable. If you are going to keep your primary home, then use it as short term money only, if you are under a time crunch. If you have time, just get a new mortgage on the new property.

My unsolicited opinion about this market we are in. It feels a lot like 2007/2008, but without the shady loan programs. People are removing Inspection, Financing and Appraisal contingencies from there offers, which is INSANE to me. Add that they are over-bidding on homes that are starting to have issues appraising for the sales price. I have seen some unwise purchase contracts come across my desk. I try to protect my clients as much as I can, but you can only lead a horse to water........... Protect yourself, protect your money and leave your emotions at home when negotiating. The market will quiet down. With rates starting to tick up, people are getting concerned that they are losing the affordability of their next bigger house because the monthly payments are increasing every week, until they lock in their loan/interest rate. This is making some people double down on their offers because they may not be able to afford that same house in a few months.

I hope my rant helped, maybe a little. :)
 
Synovus has a HELOC for good credit folks, 700 + score, that has about $50 in closing costs. I did one a year or so ago. You have a $500 penalty if you close it in less than 2 years.
 
Granite3 said:
Synovus has a HELOC for good credit folks, 700 + score, that has about $50 in closing costs. I did one a year or so ago. You have a $500 penalty if you close it in less than 2 years.
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I was actually in Synovus yesterday and they had some pretty good programs for HELOC right now. I was the brochure stack on the corner of the managers desk. I will have to say I am considering it myself.
 
In fact, more and more often I meet people who are wondering whether they should take out a loan/rent or save money and buy a house. It seems to me that this is a normal phenomenon in our time. Why wait so long to buy something if you can do it quickly and reliably. Life is too short, boy, to hope for tomorrow. For example, I really wanted to please myself with a new house and, after studying a lot of information, I came across decided to take out a mortgage https://dollarbackmortgage.com/ and I did not regret that I trusted them. In addition, do not forget to take a very responsible approach to the consideration of the contract. I hope I helped you make a choice!
 
Had a friend get a second mortage back years ago. Times got hard and he filed bankruptcy and because he had a 2nd mortage, he lost his house! Don't know about laws today but with all this junk happening everyday, be careful.
 
james357 said:
I'm thinking about getting a second mortgage so I can have cash on hand to buy a house outside of the Atlanta area. I have a house that has 220000 fair market value and that went up almost 17,000 last year and now they're saying that the value has increased 15% this year. This is just what people are saying on my email side that Paulding County homes are going up to 15%. What I'm thinking of doing is getting a second mortgage and sitting on the cash and waiting for the houses bubble to pop in the next year. If it doesn't happen I'll pay my second mortgage off or in the meantime if I find the house I'll be able to pull the trigger. I see homes going up for sale and 3 days later I see a pending on the home. Does anyone have any advice about my strategy. Ideally I would like to see the house market bubble Pop and homes drop 30%. But Everything's Relative and if the house is dropped 30% my home will drop 30%.
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Last year Zillow said my home value 257k and wants to send someone out to check and confirm those is in good shape. I said no thanks.
This year 328,400 again the want to inspect the house before offer. Less 1% minus anything that needs repaired. If that's 5,000 I wont need to get a loan. Do any of you know positive or negative about Zillow?
I have a friend that sold thru their 1% program in 6 days sold his house above Chattanooga. He said that program was a blessing. This happened 2017 or 18.
 
james357 said:
I'm thinking about getting a second mortgage so I can have cash on hand to buy a house outside of the Atlanta area. I have a house that has 220000 fair market value and that went up almost 17,000 last year and now they're saying that the value has increased 15% this year. This is just what people are saying on my email side that Paulding County homes are going up to 15%. What I'm thinking of doing is getting a second mortgage and sitting on the cash and waiting for the houses bubble to pop in the next year. If it doesn't happen I'll pay my second mortgage off or in the meantime if I find the house I'll be able to pull the trigger. I see homes going up for sale and 3 days later I see a pending on the home. Does anyone have any advice about my strategy. Ideally I would like to see the house market bubble Pop and homes drop 30%. But Everything's Relative and if the house is dropped 30% my home will drop 30%.
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The value did not go up, only the price.
 
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