Posted by Anonymous on 5/31/06 10:55am
Msg #123200
second loan
what does it mean when you need to do a second or third loan at the signing?
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Reply by Cimperman/rollincloser - Brian J. on 5/31/06 11:02am
Msg #123204
it just means that the 1st lender would only approve so much so a second lender is need OR sometimes a heloc=equity loans on refis which acts like a credit card //25,000 = approved borrower may use all or use 15,000
basically some are borrowing more than they could afford maybe a unsavory l.o.
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Reply by ReneeK_MI on 6/1/06 4:24am
Msg #123382
Re: Brian ...
About your comment that "basically some are borrowing more than they could afford maybe a unsavory l.o."
I don't like leaving these kinds of assumptions out here for others to pick up. It's an incorrect assumption. One reason it can make good financial sense to do a 'combo' loan of a 1st/2nd INSTEAD of just a single first is to avoid paying private mtg insurance (PMI, sometimes called MIP). It certainly doesn't mean they're borrowing more than they can afford, OR that they had an 'unsavory' L/O.
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Reply by MistarellaFL on 5/31/06 11:02am
Msg #123205
more money for you
I charge an additional 1/2 price of 1st loan to do a piggyback (2nd loan).
If my fee is $150 1st, I then add $75/ 2nd = $225 for both
It could be another refi, or a heloc.
The first loan isn't enough money for the purchase or refi, so a 2nd loan mtg is required.
I'm sure there are 3rds, but I've never seen one.
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Reply by Becca_FL on 5/31/06 12:55pm
Msg #123231
I have, Mistrella
>>>I'm sure there are 3rds, but I've never seen one.<<<
I've seen two. One was a swimming pool loan and the other was a home improvement loan for a new metal roof.
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Reply by MistarellaFL on 5/31/06 1:57pm
Msg #123248
Becca
I knew there must be. Quick question: How so you charge for the 3rd? 1/2 fee like the 2nd, or do you reduce your fee even further for the 3rd? Altho the issue isn't before me, I am curious.
I am inclined to NOT reduce fees lower, what do you do?
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Reply by Becca_FL on 5/31/06 2:17pm
Msg #123254
Re: Becca
I didn't do these in combonation with a 1st or a 2nd. Mine were just stand alone loans so I charged my base fee. I agree with you though, I would not reduce my fee further.
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