HELP BORROWERS GET CASH & KEEP THEIR LOW INTEREST RATE 1st LIEN
Existing Low Rate Loan with a
New 1st Lien
Cash Out 2nd Lien
Cash Out Refinance
WHAT IS A BLENDED RATE?
A blended rate is a calculation that takes into account the interest rates of a first mortgage and a second lien by creating a weighted average. To determine the blended rate, the interest rate of the first mortgage is multiplied by its remaining balance, then added to the interest rate of the second lien multiplied by its balance. The sum is then divided by the combined balance of both loans. This results in a single interest rate that represents the actual cost of borrowing, making it easier to understand and compare loan options.
WHAT IS A SECOND LOAN?
A second mortgage loan, also known as a home equity loan, enables property owners to access the equity they have accumulated in their home, without having to refinance their existing primary mortgage. By using a second mortgage as a cash out transaction, homeowners can obtain funds that can be used for various purposes, including but not limited to, home improvements, consolidating debts, buying an investment property, purchasing a new vehicle, or financing their child’s education. The entire amount obtained from a second mortgage can be used for these purposes.