If you have been wanting to spruce up your kitchen, bathroom or any part of your home and you don’t want to touch your low interest rate on your existing mortgage, a second mortgage could be an option worth considering. [Read more…]
Home Equity Loans and Home Equity Lines of Credit
July 7, 2022 by Leave a Comment
Home Equity Loans and Second Mortgages
March 25, 2022 by 2 Comments
Home equity lines of credit (often referred to as HELOCs) and fixed rate second mortgages are available again at Mortgage Master Service Corporation.
You can use a home equity loan or fixed-rate second mortgage to access home equity without doing a cash-out refinance of your first mortgage. This may be really desirable considering the appreciation of homes and recent low mortgage rate environment. Click here for current mortgage rates for your Washington state home.
Here are some of the features: [Read more…]
Second Mortgages and Home Equity Lines of Credit
June 23, 2017 by Leave a Comment
Mortgage Master Service Corporation has second mortgages (home equity lines of credit aka HELOC) available for homes located anywhere in Washington state. The second mortgage/HELOC is limited to owner occupied/primary residences and second homes. They are not currently available for investment property. [Read more…]
80 – 10 – 10’s now are back… at Mortgage Master Service Corporation!
December 31, 2013 by Leave a Comment
It’s back… the 80/10/10 mortgage program which allows home buyers to put just 10% down and avoid having private mortgage insurance via a second mortgage/home equity line of creedit. The second mortgage/home equity line of credit technically does not have to be at 10% with the first mortgage at 80% of the loan to value (sales price). Often times, the mortgages may be structured around conforming loan limits, as long as the total combined loan to value is 90%.
Refinancing when you have an existing Second Mortgage or HELOC (Updated for 2026)
December 15, 2011 by 62 Comments
Refinancing with a HELOC or Second Mortgage (2026 Guide)
One of the most common refinance questions I’m hearing right now is:
“Can I refinance if I already have a HELOC or second mortgage?”
Short answer: Yes — but how it works depends on your situation.
If you have a home equity line of credit (HELOC) or an existing second mortgage, refinancing is absolutely possible. It just requires a little more strategy.
After more than 25 years helping Washington homeowners with their mortgages, I can tell you this: [Read more…]
The Difference One Dollar Makes: Conforming vs Jumbo Rates
July 14, 2011 by Leave a Comment
This morning via Twitter, Talon Title asked me what the difference in rate is between a conforming and jumbo mortgage. Currently, as of October 1, 2011, the jumbo loan limit is set to be reduced unless Congress passes an extension. In the Seattle area, the loan amount for jumbos will be anything over $506,000 (currently the loan limit is $567,500) for a single family dwelling. Ben Bernanke has stated that private banking will step in to finance these borrowers needing a mortgage over the conforming loan amounts…this is at a price. He doesn't feel this will squeeze those borrowers out of the market. I wonder if this will squeeze more buyers into adjustable rate mortgages.
Here's the difference in rates based on current pricing (as of 8:30 a.m. on July 14, 2011) with 740+ credit and an 80% loan to value. We know the difference in the greater Seattle area between a jumbo and conforming rate will be $61,500 in down payment or equity.
Conforming loan amount of $417,000 or lower.
30 Year Fixed: 4.500% (apr 4.602).
5/1 ARM: 3.000% (apr 3.292). With 5/2/5 caps, this product is fixed at 3.000% for 60 months (P&I $1686) and then may adjust up 5% to 8.000% at the 61st payment (P&I $2744) or as low as 2.25% (P&I $1114). The rate will continue adjust up or down no more than 2% annually on the anniversary date and may never be higher than 8% or lower than 2.25%. Based on a $400,000 loan amount.
Conforming High Balance loan amount of $417,001 to $567,500 (for King County, Snohomish County or Pierce County).
30 Year Fixed: 4.625% (apr 4.602).
5/1 ARM: 3.875% (apr 3.912). With 5/2/5 caps, this product is fixed at 3.875% for 60 months (P&I $2379) and then may adjust up 5% to 8.875% at the 61st payment (P&I $3786) or as low as 2.75% (P&I $2102). The rate will continue adjust up or down no more than 2% annually on the anniversary date and may never be higher than 8.875% or lower than 2.75%. Based on a $506,000 loan amount.
5/1 ARM: 2.875% (apr 3.231). With 5/2/5 caps, this product is fixed at 2.875% for 60 months (P&I $2099) and then may adjust up 5% to 7.875% (P&I $3420)at the 61st payment or as low as 2.25% (P&I $1953). The rate will continue adjust up or down no more than 2% annually on the anniversary date and may never be higher than 7.875% or lower than 2.25%. NOTE: 5% additional down payment (75% LTV) is required for this scenario. Based on a $506,000 loan amount.
Non-Conforming – Jumbo loan amounts $567,501 and higher (until October 1, 2011).
30 Year Fixed: 5.250% (apr 5.371).
5/1 ARM: 3.875% (apr 3.904). With 5/2/5 caps, this product is fixed at 3.875% for 60 months (P&I $2669) and then may adjust up 5% to 8.875% at the 61st payment (P&I $4246) or as low as 2.75% (P&I $2358). The rate will continue adjust up or down no more than 2% annually on the anniversary date and may never be higher than 8.875% or lower than 2.75%. Based on a $567,501 loan amount.
Let's pretend that it's October 1, 2011 and that the changes to conforming loan limits are in place and somehow, mortgage rates are exactly the same as what I've quoted above.
The difference between the conforming high balance and jumbo rates are currently 0.625% in interest rate with the 30 year fixed mortgage. A loan amount of $506,001 or more (proposed future jumbo) would have a $193 higher mortgage payment with the jumbo rate over the conforming high balance based on rates above.
Are people going to stop buying homes that are in the current conforming high balance price range? I don't think so… I do think that when the conforming loan limits are reduced later this year, it will cause some to select mortgage programs they might not have considered such as adjustable rate mortgages or piggy-back second mortgages. It seems to me that Congress should allow the temporary higher loan limits to stay in place until housing becomes more stable. There was some discussion during testimony yesterday by Congressman Miller in California, however as I mentioned, Ben Bernanke doesn't seem to think that the reduction in loan limits will impact housing significantly. We'll know more in a few months…and don't forget, Fannie has issued "warnings" via their FAQs that we may see loan limits further reduced effective January 1, 2012.
Just for fun… since we're pretending to be in the future, here's a trip down 80s memory lane:
Piggyback Combo Mortgages are Back
June 21, 2011 by Leave a Comment
I’m pleased to announce that we now have second mortgages and home equity loans available in combination with a first mortgage at Mortgage Master Service Corporation. I see this being very useful with keeping loan amounts under conforming limits (especially once they’re scheduled to be reduced on October 1, 2011). Here’s some quick points on this program:
- maximum allowed total loan to value is 85% with a mid-credit score of 720 or higher for owner occupied.
- maximum allowed total loan to value is 70% with a mid-credit score of 700 – 719 for owner occupied.
- maximum allowed loan to value of 80% with a mid-credit score of 720 or higher for a second home.
- available for purchases or refinances.
- maximum allowed debt-to-income ratio of 45%.
- available as a HELOC (home equity line of credit) or fixed rates.
Should you consider using a first and second mortgage combo for your home financing? That’s up to you! What’s important is knowing and understanding what options are available to you so you can make an informed decision. If you are buying or refinancing a home located anywhere in Washington state, I’m happy to help you with your mortgage needs.
New Conforming Loan Limit Won’t Help Refi’s w/2nds…FHA May Save the Day
March 13, 2008 by 2 Comments
Fannie Mae’s underwriting guidelines for the temporary conforming loan limits have been released and it looks like the new loan amounts are not going to be as helpful as many had hoped. The new guidelines for loan amounts between $417,001 – $567,500 in King, Snohomish and Pierce Counties are far more strict.
The biggest whammy is that if you were hoping to combine your first and second mortgage (or heloc) into one new conforming-jumbo mortgage, you’re out of luck. Fannie is not allowing any "cash out" refinances. This means that even if you were just paying off the two mortgages and not receiving a nickle back at closing–it’s not going to fly.
You must have a minimum of 660 credit scores for a fixed rate purchase for a LTV of 80% or less for a purchase using a fixed or adjustable rate.
Limited cash out refinances are allowed up to 75% loan to value with a minimum 660 credit score. Limited cash-out means that you are allowed to roll in the closing costs to the refinance and receive no more than $2000 cash back at closing (no second mortgages/helocs can be included in the refinance).
Update: it appears that Freddie Mac will allow cash out refinances up to a 75% loan to value with a 720 minimum credit score.
Adjustable rate mortgages are qualified at the fully amortized PITI at the higher of the note rate or fully indexed rate (worse case rate).
Be prepared for a "full doc" mortgage. There is no "stated income" allowed. You will also need two months of reserves (PITI) and are limited to a 45% DTI (debt to income) ratio.
You can only have four financed properties, including your principal residence.
On Monday, I believe lenders will finally unveil pricing…which again is said to not be as exciting as consumers had hoped. I’m hearing that the rates will fall between current Jumbo and conforming.
Rumor has it that the FHA-jumbo will be more friendly to "jumbo" homeowners…if they can get over paying the upfront MIP (1.5% of your loan amount) and monthly mortgage insurance (0.5% of your loan amount/12 months). For example, on a $500,000 loan amount, the upfront MIP would be $7500 (typically financed into the loan) plus monthly mortgage insurance in the amount of $208.33…even if you have an 80% loan to value. We’ll just have to wait and see a couple more days.
Remember, these loan limits only last through December 31, 2008.
More to follow.
