What is the purpose of the second mortgage? What would be an example of a time one would come in handy, and how would you know that time when it came. Thank you so much in advance everyone...
Also known as a home equity loan or HELOC - home equity line of credit. Unknown in Texas when I lived there 12 years ago, but I think I saw were they're allowing them now.
The purpose is to get money. What you do with the money is up to you. Often used to do major home improvements. But just as often used to take a nice vacation. Commonly used by real estate investors to generate cash for making investments.
Very interesting, Great way to drum up rehab money as well to I suppose if you had too...Thank you so much....By the way, do you ask the lending institution for the 2nd or is it on them to bring it in to close a deal?
Usually a home equity loan is totally separate from your purchase. After you own the home, you go to a bank, mortgage broker, or whatever and apply for one.
Sometimes houses are purchased with two loans. One for 80% of the purchase price and a second (a "piggyback" loan) for the remaining 20%. But that wouldn't result in any money in your pocket.
These must still have limited availability in TX or you would be getting bombarded with pre-approved offers. :D
Lol, be a while b4 I'm eligible... Thank you for taking the time to answer this for me :lol: