| The second home mortgage lender is being sought in | | | | for lending the money to you. Normally one point is |
| a way he has never been sought before. He sees to it | | | | equal to one percent of the money lent. However, the |
| that you maintain a decent cash flow before agreeing | | | | number of points with each company is not the same. |
| to your application for the second home mortgage. He | | | | Many a second home mortgage lender are restricted |
| could ask you for a cash flow statement of the | | | | by the amount of points they could charge by the |
| property and its rental history. He will take a second | | | | statutory law. But it is your duty to see that the |
| appraisal of the property which is used as a security. | | | | number of points you would be charged is on paper, |
| Even if your home boasts of sturdiness and a good | | | | so that the deal is fair. |
| rental history, the mortgage banks will only consider | | | | A second home mortgage lender will be more |
| about 80 percent of the rental income. | | | | stringent on the loan applications compared to the |
| There are loans which would require you to pay in a | | | | conventional loan applications. This is because the |
| year. Some second mortgage loans may have a | | | | finances of a second-home buyer are not forthcoming |
| period of 15 or 20 years. So you have to choose the | | | | so easily. The points charged are a quarter or a half |
| second home mortgage lender which would give you | | | | points higher than the normal rates. The typical |
| the best deal for you. Suppose you require $3000 for | | | | perception of the second home owner is that he or |
| the maintenance of your home, it would be better if | | | | she is more affluent than the single-home buyer. Now |
| you take a loan which extends for five years or more. | | | | with the opening of the real-estate market in big |
| If it is a short-termed loan than your monthly payments | | | | manner, and competition amongst the banks for a |
| could shoot up as you would have to pay the entire | | | | larger pie of the borrower's market, the urge to fulfill |
| amount in a brief period. | | | | customer needs is stronger with the average second |
| Most mortgage companies charge a fee called 'points' | | | | home mortgage lender. |