2007-02-07 12:08:34 · 4 answers · asked by Jerry R 1 in Business & Finance ➔ Renting & Real Estate
You can have as many loans on a property as you want, as long as the lenders don't have a problem with you exceeding your LTV (Loan to value) ratio.
For instance if your house is worth $400,000. and your first mtg is $100K, and you want a second for $100K, and a third for $100K, that would probably work - most lenders don't want you to owe more than around 80% of the total value.
Each have different requirements however, and nobody likes to be the last lender because if you default on the loan and it gets foreclosed on, the first loan is in first place and whatever is left over goes to the next one, and so on.
The more loans you have, the higher you'll usually pay in interest as well, because of this risk. You may want to compare a Home equity loan against a refi and see which one is a better deal for you, rates are so low right now, I'm betting a refi would be better, but then again, don't know your situation, but comparing and shopping is always going to be in your favor.
2007-02-07 12:17:52 · answer #1 · answered by Paula 2 · 0⤊ 0⤋
You can have 2nd, 3rd, etc mortgages. Instead of getting multiple loans, you can get a 125% LTV loan too. See example from google search. Personally, its a pain paying multiple people so its better not to have more than 2 mortgage loans - don't want to miss any payments.
2007-02-07 13:46:17 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Does the term upside down mean anything to you?
2007-02-07 16:08:29 · answer #3 · answered by Anonymous · 0⤊ 0⤋
I agree with Drew on this one.
2007-02-07 16:55:29 · answer #4 · answered by teran_realtor 7 · 0⤊ 0⤋