Loan Scenario: VA, $575,000, 745, 75% LTV, Purchase

Hello there,

I currently have a town home & eying on a new single family home so that cud take advantage of the low sales price that exists now. The loan amount I am looking at is jumbo. A few lenders that I talked to told me no one does second mortgage/ 2nd trust loan now a days & hence I will have to go with one single jumbo loan.

Say for instance I go with one single jumbo loan, and few years down the road if I can manage to accumulate some considerable cash, say roughly about 100K, then at that point, can I pay a lump sum amount of 100K towards the principal of my mortgage & reduce the monthly payments?

One other option is to refinance my loan at that point, but for a 500K loan, we are looking at about 7 to 10K as closing costs. Isn't there any other way, by which I can lower my monthly payments? Every one talks about lowering the term of the loan ONLY.

Further, is it true that there is no one who does 2nd rust loans anymore? If no, can someone refer me to one in Northern VA pls??

reg,

Chanakya

Hi Chankya,

You can get a second loan still and there are numerous ways to go about this in the most cost beneficial way.  Thank you for putting up good information here, however, a lender will definately need more to truly paint a good picture for you.  We are located very close to you in Maryland on the Eastern side of DC in Laurel, MD.  Feel free to check out my profile here and feel free to contact me if you need further assistance and/or advice.

Stu

If you pay down the balance substantially in a few years, certain lenders will allow for a recast of the loan, in which, all the terms of your loan stay the same - i.e. interest rate, number of years left, etc..., except the payment would be adjusted downward due to the substantial paydown of the balance.

Not all lenders allow for a recast, so it's important to ask up front if that is an option.

It is rather unfortunate that your state/county assess such hefty taxes when you purchase or refinance.  It could easily costs $7k-$10k, at the same time, there should be options to structure the loan with lower closing costs than that.

Hello Chanakya,

We offer a recast on our mortgges which will reduce the monthly payments should you decide to pay a large lump sum to our balance. The fee as of today is $250.00.

Please check our website www.advancial.org and if you like our rates / programs please give me a call at 972-201-1645 John Burkel.