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All Forum Posts by: Nick Hiersche

Nick Hiersche has started 4 posts and replied 23 times.

Post: 1yr BRRRR/Value Add = $1,440,600 in portfolio equity but no money in the bank, HELP

Nick Hiersche
Posted
  • Lender
  • Miami, FL
  • Posts 27
  • Votes 16

This is where 2nd mortgages come in! There are also cash flow based lending products as well as asset based lending products! However, asset based loan products require liquid assets, property equity is not a liquid asset for an asset based program.

All our 2nd mortgage programs just increased limits to $750,000! So that is a great recent update!

Post: What type of mortgage should I get?

Nick Hiersche
Posted
  • Lender
  • Miami, FL
  • Posts 27
  • Votes 16

Typically with a higher FICO profile you would lean towards conventional vs FHA, for the lower PMI and no up front MIP! Remember FHA has an additional 1.75% fee for UFMIP at closing on top of all other fees! Check our site for live rates for both updated hourly so you can compare!

Post: Down payment on DSCR

Nick Hiersche
Posted
  • Lender
  • Miami, FL
  • Posts 27
  • Votes 16

Yes we can do 85% LTV DSCR or up to 90% CLTV DSCR!

Post: Less than 20% down

Nick Hiersche
Posted
  • Lender
  • Miami, FL
  • Posts 27
  • Votes 16

Can't technically have a multi unit property as a 2nd primary home, but can do it as an investment property! We can do 85% LTV DSCR and up to 90% CLTV DSCR!

Post: Understanding 2nd Mortgage Rates: A Guide to Home Equity Loans

Nick Hiersche
Posted
  • Lender
  • Miami, FL
  • Posts 27
  • Votes 16

Homeowners can leverage home equity with second mortgages—explore 2nd mortgage rates, benefits, and loan options for financial flexibility.

Second mortgages can be a powerful financial tool, but understanding the associated interest rates and repayment structures is essential for making the best financial decision”— Nicholas Hiersche - President

As investors seek ways to maximize their home equity, second mortgages have become a key financial strategy for accessing additional funds. Understanding 2nd mortgage rates and how they impact borrowing costs is essential for investors considering this option.

The Mortgage Calculator, a trusted digital mortgage lender, provides comprehensive insights into second mortgage loans, including how interest rates are determined, key advantages, and when borrowers should consider this type of financing.

What Is a Second Mortgage?

A second mortgage is a loan taken out against a property that already has a primary mortgage. This allows homeowners to tap into their equity without modifying their original mortgage terms. There are two main types of second mortgages:

Fixed-Rate Second Mortgage: Provides a lump sum with a fixed interest rate and structured monthly payments.
Home Equity Line of Credit (HELOC): Works like a credit card, allowing flexible withdrawals with variable interest rates.
Second mortgages enable homeowners to borrow a percentage of their available equity, typically up to 80-90% of their home's value, depending on lender policies and borrower qualifications.

How Are 2nd Mortgage Rates Determined?
Several factors influence second mortgage interest rates, including:

Credit Score: Higher scores generally result in lower interest rates.
Loan-to-Value (LTV) Ratio: The more equity a borrower has, the better the terms they may receive.
Loan Amount & Type: Fixed-rate home equity loans may have different rates compared to HELOCs, which fluctuate with market conditions.
Debt-to-Income Ratio (DTI): Lenders assess how much of a borrower's income goes toward existing debt.
Unlike primary mortgage rates, second mortgages tend to carry slightly higher interest rates due to the lender’s increased risk. If a borrower defaults, the first mortgage lender is prioritized in repayment, making second mortgages riskier for financial institutions.

"Second mortgages can be a powerful financial tool, but understanding the associated interest rates and repayment structures is essential for making the best financial decision," said Nicholas Hiersche, President of The Mortgage Calculator. "Borrowers should compare second mortgage rates carefully and explore different options to maximize their home equity potential."

Benefits of a 2nd Mortgage
Homeowners choose second mortgages for several reasons:

Lower Interest Rates than Credit Cards or Personal Loans – Mortgage-backed loans typically offer more favorable rates than unsecured debt.
Potential Tax Benefits – Interest on home equity loans may be tax-deductible if the funds are used for home improvements (consult a tax professional).
Retaining the Original Mortgage – Instead of refinancing, borrowers can preserve their existing low-interest first mortgage.
Flexible Usage – Funds can be used for debt consolidation, tuition, investments, or emergency expenses.
Who Should Consider a 2nd Mortgage?
Homeowners in the following situations may benefit from a second mortgage:

Debt Consolidation: Those carrying high-interest credit card debt can use a second mortgage to refinance at a lower rate.
Home Renovations: Borrowing against equity to finance home improvements can increase property value.
Business Ventures & Investments: Some investors use home equity to fund new business opportunities or purchase additional real estate.
Second Mortgages for Investment Properties: Real estate investors can leverage property equity to expand their portfolios.
Unexpected Expenses: A HELOC can provide a financial safety net for emergencies.
Market Trends Impacting 2nd Mortgage Rates
Interest rates for second mortgages fluctuate based on broader market conditions. Recent trends include:

Federal Reserve Interest Rate Policies: The Fed's decisions on interest rates directly affect HELOC rates.
Housing Market Growth: As property values increase, homeowners gain more equity to borrow against.
Inflation & Economic Conditions: Inflationary pressures can impact mortgage rates, making it crucial for borrowers to evaluate current market trends.
Borrower Case Study: How a 2nd Mortgage Helped a Homeowner
To illustrate the benefits of second mortgages, consider this real-world scenario:

Case Study: A homeowner with $250,000 in home equity wanted to renovate their kitchen and consolidate high-interest debt.
Loan Type Chosen: A $50,000 fixed-rate second mortgage at a 6.5% fixed rate over 15 years.
Outcome: The borrower secured lower monthly payments, improved their home value, and reduced overall interest expenses compared to credit cards.
Alternatives to a 2nd Mortgage

While second mortgages are beneficial, they are not the only option. Homeowners may also explore:

Cash-Out Refinancing: A good choice if refinancing a primary mortgage offers better rates.
Reverse Mortgages: For seniors aged 62+, a reverse mortgage allows access to home equity without monthly payments.
Personal Lines of Credit: Unsecured credit lines can provide flexibility for borrowers without home equity.
The Mortgage Calculator’s Resources for 2nd Mortgage Borrowers
To help homeowners navigate second mortgage options, The Mortgage Calculator provides informational tools and mortgage calculators to estimate monthly payments, compare loan terms, and evaluate borrowing potential.

For more details on 2nd mortgage rates and loan options, visit The Mortgage Calculator.

About The Mortgage Calculator
The Mortgage Calculator is a licensed Mortgage Lender (NMLS #2377459) that specializes in using technology to enable borrowers to access Conventional, FHA, VA, and USDA Programs, as well as thousands of Non-QM mortgage loan program variations using alternative income documentation. The platform is recognized for its commitment to transparency, objective financial analysis, and educational resources designed to help homebuyers make informed mortgage decisions.

Post: 85% ltv DSCR

Nick Hiersche
Posted
  • Lender
  • Miami, FL
  • Posts 27
  • Votes 16

Yes quite a few of our 5,000 options have rate and term or purchase!

Post: Section 8 and DSSCR Loans

Nick Hiersche
Posted
  • Lender
  • Miami, FL
  • Posts 27
  • Votes 16

Every program has different guidelines! Just have to dig in and find the one that works! Likely will reduce to whatever market rent is on 1007 report, if the Section 8 income is higher than market.

Post: Large multi-family (5+ units) buy & hold investment in Fort Lauderdale, FL

Nick Hiersche
Posted
  • Lender
  • Miami, FL
  • Posts 27
  • Votes 16

Selling 1 unit at the moment, holding the rest for STR you are correct

Post: Large multi-family (5+ units) buy & hold investment in Fort Lauderdale, FL

Nick Hiersche
Posted
  • Lender
  • Miami, FL
  • Posts 27
  • Votes 16

Investment Info:

Large multi-family (5+ units) buy & hold investment in Vista.

Purchase price: $2,000,000
Cash invested: $300,000

BRAND NEW CONSTRUCTION! NEVER LIVED IN! NO MONTHLY HOA FEE SOON TO BE GATED ENTRY TO THIS PRIVATE ENCLAVE OF 5 ATTACHED SINGLE-FAMILY TOWNHOMES. PERFECT FOR INVESTORS OR OWNER OCCUPANTS DESIRING A LOW-MAINTENANCE PROPERTY. SHORT-TERM RENTALS ALLOWED LESS THAN 5 MINUTES AWAY FROM ALL THE LAS OLAS BLVD ACTION. 1-CAR GARAGE + GUEST PARKING. 1 BLOCK AWAY FROM THE ADDERLEY, AN AMAZING 455 UNIT MIXED-USE DEVELOPMENT. For info and pics check out https://bit.ly/47mwtaE

How did you find this deal and how did you negotiate it?

Jose Gonzalez at Miami Real Estate Agency
https://josegonzalez.miamirealestate.agency

How did you finance this deal?

15% Down DSCR with Jose Gonzalez at The Mortgage Calculator
https://themortgagecalculator.com

How did you add value to the deal?

Bulk purchase of non warrantable/no HOA units.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes The Mortgage Calculator https://themortgagecalculator.com for 15% down DSCR loan!

Post: Real Estate Weekend Miami 2022 - Keynote Speaker Marcus Lemonis

Nick Hiersche
Posted
  • Lender
  • Miami, FL
  • Posts 27
  • Votes 16

Real Estate Weekend Miami 2022 w/ Panels, Mixers, Yacht Cruise! Keynote Speaker Marcus Lemonis (CNBC's The Profit and HGTV's The Renovator)Real Estate Weekend | Miami, FL
December 9th-11th 2022

Real Estate Panels | Networking Mixers | VIP Yacht CruiseSpecial Keynote Speaker: Marcus Lemonis

Many know him as the “business turnaround king” and star of CNBC’s prime time reality series The Profit. Lemonis’ notoriety has been established by his tenacity, shrewdness, and determination. His biggest business success is as the chairman and CEO of Camping World, the nation’s largest RV and outdoor retailer, and Good Sam, the world’s largest RV owner’s organization.
On his TV show, The Profit, he lends his expertise to struggling small businesses around the country, judging, and improving them with the “3P” principle: “People / Process / Product.” HGTV has signed entrepreneur, advocate and philanthropist Marcus Lemonis for a new eight-episode series, The Renovator. Marcus, who has helped businesses make big changes for years on CNBC’s The Profit, now will help homeowners fix their most valuable personal asset—their home.

Powered by https://realestatelive.events

Last Year's Event:
https://youtu.be/vkaI1lnPt6Q

Real Estate Weekend in Miami is a series of networking events, panels, and a yacht cruise for Real Estate professionals and investors.