Wednesday 30 - Having Two Owner-Occupied Mortgages Question: It is possible to have more than one mortgage for an owner-occupied property at a time? Answer: It is not only possible, it's entirely common. For example, a home equity line of credit (HELOC) is nothing more than a second mortgage or trust. Also, homes in recent years have often been bought with two loans -- an 80-percent first lien, a second loan for 10 percent, 15 percent or 20 percent of the balance and cash for any part of the purchase price which has not been financed. Such "piggyback" loans allow buyers to finance real estate with little or nothing down and thus avoid the need to pay for private mortgage insurance. Unfortunately, buying real estate with little down can often lead to big affordability problems if interest rates go up and monthly payments soar.

Published: April 30, 2008

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