Current Mortgage Rates

Monday, October 06, 2008



There are many benefits of taking out a second mortgage. Here are several of those benefits:
  • Extended Repayment Terms - Home equity lines of credit can have incredibly flexible repayment terms. Some will not require payment in full until you sell your home. This isn't to say you should allow debt to languish, but the extended payment terms on loans like these are a huge benefit.
  • Payments on Interest Only - Home equity lines often only require a payment based on the interest you have accrued. This makes for much lower monthly payments.
  • No Closing Costs - Most home equity lines of credit are available with no closing costs and no money out of pocket for you. There are always some fees, but with the right lender, these fees will be built in to their commission structure.
Whether you have good credit or bad credit, second mortgages allow for you to cash out on larger amounts of money at relatively low fixed mortgage interest rates, as compared with credit card rates and variable interest rate home equity lines of credit (HELOCs).

Second mortgage loans may be 100% tax deductible. Flexible guidelines allow you to use the money for any purpose, including debt consolidation for lower payments and significant monthly savings. A second mortgage leaves the rates and terms of your first mortgage unchanged, so instead of having to refinance your existing mortgage, just add a second mortgages normally fund quickly with little or no closing costs. Example: Nationwide Mortgage offers 125% LTV and other second mortgages, including interest only loans that fund faster, often with no appraisal fees. In addition, since a second mortgage is based on your home's equity, as a home owner, you have the funds readily available.

A second mortgage is a secured loan and is generally easier to obtain than other types of loans. Also, the interest paid on a second mortgage is normally tax deductible. This is an enormous benefit that is not available on many other types of loans. With a second mortgage it is generally very easy to deduct the interest you pay on your second mortgage from your taxes.




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Current Mortgage Rates*

Loan Type
National Average
30-yr. fixed6.12%
30-yr. fixed jumbo7.62%
15-yr. fixed5.88%
15-yr. fixed jumbo7.12%
7/1 ARM6.38%
5/1 ARM6.25%
3/1 ARM6.00%
1-yr. ARM5.50%
1-yr. LIBOR ARM6.25%
10/1 ARM8.25%
40-yr. fixed7.12%
*Mortgage Rates Updated: 10/05/2008