Over the last 4 years second mortgage rates have been so low that they were actually lower then the Mortgage Insurance alternative.  Currently the prime rate which affects the Home Equity Line of Credit (HELOC) rates which a lot of people have (myself included) is 8.25%.  Now depending on the margin you have on this HELOC could mean your rate can be between 7.75% - any where above.  If you were one of the lucky ones and got a Prime MINUS rate.  Then you are sitting around the 7.75% rate. 

Over the last 6 months to a year we have switched gears to fixed rate seconds.  Now in the last blog we were talking about the changes in the industry.  The second mortgage rates are also changing.  The second mortgage’s are also starting to have problems with people making the payments.  They are starting to raise the rates up so high that people just won’t take them.

 For Example - I had given a quote to someone at a rate of 9.75% second (this was a 100% loan - always a little higher) was kicking the competiton’s butt and then as of March 9th - that second mortgage program is not allowed for 100% financing and the next loan that allows 100% is a rate of 15%.  I then went back to my 100% one loan program and the overall payment with mortgage insurance saved this gentlemen - $200 a month over the popular 80/20 loan we have all known to love. 

If you are someone who has been pre-approved in the last 3 months and were looking at 100% financing - Please double check with your mortgage professional and have them double check that you are still in the  best program combination to suite your needs. 

If any one wants to get a second opinion please do not hesitate to reach out to me for some friendly advice… www.todayslendingrates.com

Have a great weekend!