In a world where economic landscapes can shift in the blink of an eye, homeowners are often faced with a common dilemma: how to leverage their hard-earned real estate equity without compromising their cherished low-interest rates. The quest for financial freedom and stability, while safeguarding those mortgage terms that offer the ultimate financial security, is a riddle that many ponder.
Meet Mr. Matin, a self-employed business owner, and the operator of Myriad Solutions, a data modeling and enterprise architecture company. Matin ventured into the market for a cash-out refinance loan, propelled by a growing realization: his home, purchased in the summer of 2021, had witnessed a significant appreciation in value. His savvy purchase had proven itself a wise investment, and with his newly acquired equity, Matin faced a critical homeowner’s conundrum in 2023: how to access the financial resources tied up in his home without relinquishing his attractive interest rate.
Mortgage Solutions Designed For Today’s Market
Matin knew that his favorable mortgage rate was a golden ticket, one that he was reluctant to part with. However, the allure of releasing the equity he had built over time was too enticing to ignore. That’s where mbanc’s closed-end second mortgage came into play, providing a path for homeowners like Matin to access their home’s equity without disturbing their first mortgage’s interest rate. In this financial narrative, a remarkable solution emerges in the form of mbanc and their innovative closed-end second mortgage program. The story of Mr. Matin showcases how this financial institution is revolutionizing the way homeowners can unlock their home equity.
How Closed-End Second Mortgages Work
These loans are called “closed-end” because they provide borrowers with a lump sum of money upfront (up to $500K with MBANC). The amount you can receive depends on your credit score, income, combined loan to value (CLTV) and other qualifying criteria. You can use the money however you want — pay off debt, purchase another property, finance education, renovate your home, pay medical expenses, take a dream vacation, or pay for a wedding.
You repay the loaned amount in monthly installments over a specified loan term, usually 5-15 years (30 year term with MBANC), at a fixed interest rate. The monthly payments on the closed-end second mortgage are in addition to your first mortgage payments.
How to Choose a Closed-End Second Mortgage Lender
Different lenders will have different approval processes, interest rates, fees and offer different amounts of equity. Read customer reviews and understand what their customer service is like. It is important to shop around and do your research.
Speed — pre-approval time and days to close — is another important consideration. For self-employed borrowers, the documents required and ways to verify income are another consideration. There is no point in working with a lender or broker who does not specialize in lending to the self-employed borrowers.
At MBANC, we have supported self-made borrowers with premier lending solutions since 2005. Self-employed clients can qualify for a second mortgage or cash-out refinance using self-employed income. MBANC are a direct mortgage lender and the decision maker, which means we can offer an expedited approval process which is faster and easier than the conventional lenders, getting you access to cash fast.
An average approval time with MBANC is just 17 days. Close quickly with our award-winning Alternative Mortgage Programs, ideal for refinancing. Our experienced and vested professionals will guide you step-by-step with the right mortgage solution for you.
Entrepreneurial Income, Easy to Qualify Mortgage Options, Peace of Mind
In an era where financial solutions often feel elusive, mbanc’s closed-end second mortgage program stands as a beacon of hope for homeowners. This innovative approach empowers individuals like Mr. Matin to secure the resources they need, all while preserving the financial stability provided by their first mortgage’s low interest rate.
The success story of Mr. Matin demonstrates that it’s possible to enjoy the best of both worlds: benefiting from your home’s equity without compromising on those favorable mortgage terms you worked so hard to secure. Whether you’re seeking to pay off debt, invest in your future, or indulge in a long-awaited adventure, mbanc’s closed-end second mortgage program is the key to unlocking the potential in your home. As the world of finance continues to evolve, homeowners like Mr. Matin prove that with the right tools and strategies, you can navigate these changes and secure a brighter financial future, all while keeping your feet firmly planted on the solid ground of your low-interest rate mortgage.
In the dynamic landscape of homeownership, mbanc’s innovative solution illuminates a path toward financial empowerment and security, allowing individuals to seize the opportunities that life presents. In the end, homeowners no longer need to choose between enjoying the fruits of their home’s appreciation and safeguarding their low interest rate. With the mbanc closed-end second mortgage, homeowners can have it all – a financial win-win that makes homeowner dreams come true.
Frequently Asked Questions
Below are some questions our clients ask us about our closed-end second mortgages.
How much can I borrow with a closed-end second mortgage?
The amount you can borrow depends on the equity in your home. MBANC provides closed-end second mortgage amounts up to $500K. Most lenders allow you to borrow up to 80% of your home’s equity, with MBANC you can borrow up to 85% for up to 30 years.
What are the interest rates for closed-end second mortgages?
Rates for self-employed borrowers are defined by many factors: income calculation method, and equity position, credit score, loan term, income, and debt. Our interest rates are slightly higher than the regular mortgage market rate because we are willing to consider your alternative documentation, while other lenders will not take this risk.
How do I qualify for a closed-end second mortgage?
To qualify for a closed-end second mortgage with MBANC, you need to have a credit score of at least 660 and a debt-to-income of 50% or lower. Self-employed borrowers can qualify with MBANC using personal or business bank statements.