Answers
What is a good second mortgage rate?
im buying a second house for a investment. what would be cancedered a good rate for a person with good credit.
Best Answer:
It depends on how you are doing it. If you are taking out the 2nd mortgage on the investment property, it will be expensive (if you even find a bank willing to let you have less equity than 20% in the house). Investment property is harder and more expensive to get a mortgage on than your primary residence. It also gets worse if the investment property has multiple units (duplex is similar to a single-family, 3-4 units are still mortgagable, and >5 units you usually have to get a commercial loan -- and that's much more expensive). My 4-plex was my 1st major purchase and I didn't have much credit, so the best I could find is about 7.5% on a 15-year fixed (that was 2-years ago and rates have gone up). Where as my personal residence, I got 6.25% on a 30-year fixed for the 1st 80%...and the other 15% was at over 7% (still better than paying PMI, that was in June of '06)-- but I got a special deal though my employer that other places refused to even match, much less beat. You just have to call around and play the companies against each other.
Answers:
no higher than 6% but ide try for 3-4%
Depends on the CLTV, the property type, your credit, and the loan amount. Also, the rates on 2nd mortgages are tied more directly to the Fed rate, and as Fed has raised the rate many times in 2006 a good rate on a 2nd mortgage is 8-9%