• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Sonoma County Mortgages

Contact Us About Mortgage Financing

All financing provided by New American Funding

(707) 217-4000 | Prequalify Now

Search Sonoma County Mortgages

  • Home
  • Purchase
    • How Much Down Payment To Buy A Home?
    • How Much Income You Need To Buy A Home
    • How Much Should I Save For Buying A Home?
      • How Rates Affect Payment
    • No PMI Mortgages
    • FHA Loans
    • Sonoma County Disaster Loans
    • Jumbo Loans
  • Refinance
    • Mortgage Rates
    • Does It Make Sense To Refinance?
      • Get Your Refi Paperwork In Order
    • How To Pay Off Your Loan Faster
    • How To Remove PMI
    • How Lenders Price & Quote Loans
  • Loan Programs
  • Payment Calculator
    • Mortgage Affordability Calculator
  • Blog
  • Videos
  • About SCM
  • About Scott Sheldon

Primary Sidebar

Sonoma County Mortgages is a part of New American Funding

New American Funding - NMLS #6606

Get Your Latest Rate Quote Now!

We we choose to do a first and second mortgage to avoid PMI my broker told me the 1st loan can have a fixed rate but the 2nd loan has to be a variable rate. Is this true. I wish that we could have both at fixed interest rates.

October 15, 2012 by Scott Sheldon

Share on Facebook Share on Twitter Share on LinkedIn Share on Email

The answer is no, you do not need to have a second adjustable-rate mortgage. You  are entitled to having a fixed rate second mortgage just as you are an adjustable rate note. While this is true, there are not many second lenders out there that offer fixed rate seconds paying principal and interest over time. Your  mortgage broker may have been trying to fit you into a home equity line of credit product which is why nature an adjustable-rate mortgage tied to the prime rate. You’d probably be okay taking out the equity line of credit now given that short-term interest rates are quite low, but down the road that could change.

Here’s why: home equity lines of credit are tied to the prime rate which directly follows the federal funds rate, when the Fed funds rate moves the prime rate moves, in either direction. When the economy begins to improve i.e. a reduction in the unemployment rate, stronger job growth and  stronger consumer confidence, the Federal Reserve will revert to a tightening policy and they will hike interest rates to offset a growing economy. We don’t anticipate this happening for quite a while, but when it does happen your payment will subsequently rise as well.

Related Mortgage Advice from Scott Sheldon

  • Mortgage Rates Are Higher. Is an adjustable rate mortgage a better fit?

    This depends on a few factors: risk appetite- comfortable are you knowing that interest rates…

  • Did Your Adjustable Rate Mortgage Reset? Directions to Mortgage Payment Clarity

    In the last several years, many homeowners looking to take advantage of a lower monthly…

  • Sonoma County "Best Rates"

    Sonoma County Best Rates:there are two ways to look at them. Most consumers look at…

  • The Role of Second Mortgages In Refinancing

    The role of the second mortgage in a refinance situation can sometimes be a challenging…

Filed Under: Refinance Loans Questions and Answers Tagged With: mortgage comparison shopping, sonoma county refinancing

Get Sonoma County Mortgages News and Updates in Your Inbox

Footer

SCM on Facebook

SonomaCountyMortgages.com

Connect on Facebook

SCM On Instagram

Follow Sonoma County Mortgages on Instagram

Follow on Instagram

SCM on Zillow

Zillow Reviews for Scott Sheldon, New American Funding

See Reviews on Zillow

Location & Contact

Sonoma County Mortgages and New American Funding are an Equal Opportunity Housing Lender

Scott Sheldon, Senior Loan Officer
NMLS ID# 287389
2455 Bennett Valley Road C107
Santa Rosa, CA 95405
1-707-217-4000
View SCM Map | Email Us!

Map of Sonoma County Mortgages New American Financing Office

View Map on Google

Copyright 2010–2023 SonomaCountyMortgages.com · About Us · Sonoma County Loans · Privacy Policy · Terms Of Use · Legal · Site Map

NMLS Consumer Access © New American Funding. All rights Reserved. NMLS ID#6606.
Corporate Office 14511 Myford Road, Suite 100, Tustin, CA 92780. We at New American Funding take great pride in our customer service and make it our number one priority. We encourage you to contact us for complaint resolution or any post-closing questions you may have regarding the servicing of your loan. We strive to have your experience with New American Funding a stellar one. In the rare case that our service did not meet your expectations, please call our customer care hotline at 1-800- 450-2010, ext. 7100 or you may contact us by email customerservice@nafinc.com. Please leave a detailed message and we will follow up with you no later than the end of the next business day. If you are using a screen reader or other auxiliary aid and are having problems using this website, please call 800-450-2010 Ext. 7100 for assistance.

State Licensing (Opens in New Window) | Privacy (Opens in New Window)
Terms of Use (Opens in New Window) | Electronic Consent Agreement (Opens in New Window)
Opens in new window Opens an external site Opens an external site in a new window