Is it worth purchasing a second mortgage with 100% LTV?

Answer by  Jimbob (2275)

I would say yes as this is a good rate but you have to be able to make the payment on the pay out.

Answer by  Latin4 (11170)

At time with the ecomony the way it is, I wouldn't take out any second mortage. Sometimes we have to do without. It would be great if your house would be paid off and you'd feel lucky to have a roof over your that paid for.

Answer by  mammakat (11147)

Well, this certainly means that you may be able to borrow more or better, but you have to look at the long run- what are your interest rates, is there a bubble in the loan, and remember, you are only incorporating your first debt into your second, so you have to look at monthly payments and feasibility.

Answer by  mb (5482)

This is a complex issue as a lot of people recently lost their houses through over speculation. However, if you have steady income then yes its a good idea. 100% loan to value loans are only for the most credit worthy, you get the best possible bang for your buck (almost not interest).

Answer by  YourMoneyAnswerGal (654)

The only reason to take on a second mortgage would be to make an improvement to the property. It's important to maintain at least 80% LTV. For a second mortgage it is best to maintain at least 70% or even 60% LTV. The reason is the preserve the ability to pay off the loan if the property must be sold.

Answer by  princesa (73)

Purchasing a second mortgage is a decision that should not be rushed into lightly. It should be made with advice from a trusted financial expert.