Blog Category: HELOC

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HELOC Piggyback 2nd Trust Mortgage

Getting a 2nd trust mortgage when you bought a home was something I had never heard about when I got in the mortgage business in 1986. This is called a “Purchase Money 2nd trust.” I’d always thought a 2nd trust was something you got when you lived in a property for a long time and had built up a lot of equity (i.e. an equity line). For example when you wanted to tap the equity for home renovations or debt consolidation. However, 2nd trusts to help purchase a new home became common in the real estate boom Read More

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The Refinance Boom is not Over? Refinance Your HELOC!

Actually, the refinance boom is indeed over. However, there are a fair amount of people that still need to refinance. There are a stunning amount of home equity lines (HELOCs) outstanding and most people will need to refinance those. Most HELOCs were set up so that the first ten years of the loan only require interest only payments and no principal is due. Then, in year 11, the principal would start to amortize. And it amortizes over 20 years, not 30. This is a problem because Read More