For those of you that have a 2nd mortgage

[FreeTime]

We are considering getting a second mortgage because my philosphy is if we don't pay our bills (not that we wouldn't) someone will put a lein on our home and the same thing would happen with a tax deductible 2nd mortgage. My concern is that all of our debts will be paid off within 5 years. If we get a second mortgage it will be many more years and only reduce our payments by less than $500. For those of you that have gotten one are you glad that you did? Why should someone get or not get one? Thanks for your advice. WOW! It has been al ong time since I have visited the Community Board!

 

[janette]

I have a 2nd but got it as part of buying the house not to pay off other things.

I thought most places would let you decide on terms such as length. You may be able to get a 2nd mortage with a 5 year term so it would be paid in 5 years and you'd get the tax deduction. If you have a longer term loan you could always pay extra, just make sure there are no early payment penalties.

 

[EROS]

When you speak of reducing payments, it sounds like you are considering refinancing of your primary mortgage . Our second mortgage is a home equity line of credit for $120,000 which we have NOT tapped. The advantage of a home equity line (ours is at Prime - 1%) is that you incur no debt obligation UNLESS you choose to write checks against it. We primarily will use it for car financing because the interest is tax deductible.

 

[iluvorlando]

When we moved, we got a second mortgage to take care of some bills, pay off a car, etc..... Now that we are thinking of selling our home to buy a new one, the 2nd would have to be paid off. That is a HUGE chunk of any profit we would make. It did help us initially, but it is hurting us in the long run.

If you have a financial plan to pay off the debts in 5 years without get a refinance or 2nd, I would stick with your original plan.

So....would I ever get a 2nd again?

NO!!

 

[tnkrbell]

I would say if the reason you are needing asecond mortgage is for debt payment then I would suggest conusmer credit conseling service!! We did this and are now debt free!!! We first did a second mortgage then got into debt again so that is when we did cccs!! I wish I had done it first!! (by the way it does not show up on your credit report as long as you pay ontime!!!)