Sentences with phrase «second lien against your property»

A VA Cash - Out Loan is fundamentally different than a standard home equity loan, which is a second lien against your property.

Not exact matches

If a loans meets the following tests, it is covered under the law: 1) For a first - lien loan otherwise referred to as the original mortgage on the property - the Annual Percentage Rate (APR) exceeds by more than 8 percentage points compared against the rates on Treasury securities of comparable maturity; 2) For a second - lien loan otherwise referred to as a 2nd mortgage - the APR (Annual Percentage Rate) exceeds by more than 10 percentage points compared to the rates in Treasury securities of comparable maturity; or the total points and fees payable by the borrower at or before closing exceed the larger of $ 561 or 8 % of the total loan amount.

In other words, with a Home Equity Loan or HELOC, you will have two mortgages on your property; in all likelihood, it will have a higher interest rate than your first mortgage due to the fact that it will be held in a second lien position against the property.

The down payment is in the form of a gift that you are not required to pay back and there will not be second liens or deed restrictions against your property.

For example, if the lender is foreclosing its second mortgage, the first mortgage will still be a valid lien against the property.