Understanding Loan to Value for 2nd Mortgages

Mortgage lenders offer income documentation standards for stated income second mortgages and limited doc home equity credit lines. Consumers who are interested in taking out a second mortgage must first understand how loan to value works. Loan to Value measures the amount of equity you have or do not have in your secured collateral or home.

Take your first mortgage balance and add it to the new mortgage loan amount you plan to borrow. Take that sum from the total of the 1st and 2nd mortgages and now divide it by the value of your home and this is your combined Loan to Value. This is a crucial factor in determining the interest rate for your second mortgage or credit line. The interest rate for an 80% LTV second mortgage and a 125% second mortgage are as different as night and day. The interest rate for 125% second mortgages is often times twice as much as your current first mortgage rate. Consumers ask us frequently why people would ever pay that much in interest and the answer lies in saving they receive from consolidating their credit card debt.

•	100% Credit Lines
•	125 % 2nd Mortgage
•	Fixed Mortgage rates
•	Tax Deductible Interest
•	2nd Mortgages to 125%
•	High LTV Loans

If you have no equity in your home, but want to take out a home equity loan, Second Mortgage Outlet offers 125% loans. Take out a 2nd mortgage and refinance your adjustable rate 1st loan along with your credit card balances that have been rising each month. Second Mortgage Outlet will work with you and introduce you to participating mortgage lenders and brokers that ensure a home equity loan that meets your needs and exceeds your expectations.