Are we getting the horse a bit back of the cart, here, possibly? Have you bought your house yet? I assume not, in that you don't have mortgage set up, it appears. I'm not familiar with the housing situation generally, and certainly not with what's going on in your area, but the housing situation in many parts of the U.S. is in a real mess. Many bought several years ago, with small equity, and paying something like 1.5% interest directly at the time, but the actual amount being charged was much higher, say, 6% ...with the extra being added to the principal owing! The contract specifying that the rates were to be renegotiated after a certain number of years. When the amount that the mortgagees actually needed to pay became apparent on renegotiation ... the people couldn't pay it. So the house went on the market. Along with thousands of others in the same boat. Those (what many of us would call "spurious") mortgages were peddled over wide areas. Including to a Canadian bank in which I've held shares for 41 years, during which time share price advanced from $4.20 to about $106. and change, last May. Unfortunately, it seems that my bank had also backed an insurance company that had underwritten many of those lousy mortgages. As you know, North American stock markets are down a substantial amount during the last few months - but nothing like more than 40%! You can understand my feeling that I'd more or less like to use those guys who dreamed up that shady way of doing business as targets at a shooting range? The speed at which the Fed began freeing up money when this problem surfaced a while ago, and has moved on it again since, including today, in concert with the Canadian central bank, and some European ones the same, leads me to think that there's a lot more trouble yet to appear in the housing crisis in the U.S. Remember the Savings and Loan crisis of something like 30 years ago? Some are opining that this may turn out to be worse. If I were you, and it's at all convenient, I think that I'd be sitting on my money for a while. By the time house prices get down about as low as they may be about to go ... ... perhaps you'll have had the opportunity to have saved most of that $30,000. shortage, especially if you go into fairly heavy-duty savings mode in the meantime ... ... in which case - perhaps your problem may well have disappeared. Maybe more than disappeared ... for possibly the house you want may have had its price dropped by that $30,000. ... possibly more? And you may well have more than the "extra" $30,000. on hand ... ... Hey! maybe you can have enough extra down payment to be able to avoid mortgage insurance! The loss in value of that stock of mine since last May is about half of the amount that you're short. But I've held it for 41 years, so I guess I'm more or less too much attached to it to sell it now (and this is not the time to sell it, in any case - might be time to buy more). Just some food for thought. My daughter's wanting to buy housing in the Phoenix area. I've been suggesting to her for months that she keep her money in her jeans for a while. She made an offer last year, there was $5,000. difference, with neither stubbornly willing to spring for the diff. Within a few months, after she returned to her former location in Toronto ... ... she told me that a re-valuation of the premises had come in ... ... at $20,000. lower. Now she's back in Scottsdale, keeping her eye on the situation. Maybe even both eyes, on occasion? Sitting on her money ... still (I hope). I hope that you're having a great old week, at your "house" - (wherever that may be, at the moment!). ole joyful P.S. I'm not as upset as it sounds - when dealing with much of business in general, and the stock market, in particular, if one were to sweat the small stuff (or take a short-term view) ... ... one would have one's fingernails chewed down to bleeding, a good share of the time. Closing on age 80, very thankful to be enjoying good health, with only a small portion of needed health care payable directly, and fairly sure that I have sufficient assets to carry me through the remaining days of life ... ... with some residue for charities and offspring ... ... I'm a happy man! o j P.P.S. For many families, buying their home is the largest contract that they ever make. I strongly suggest that you make it your business to investigate the current housing crisis in the U.S. thoroughly, up, down and sideways, during the coming months, including prospects in your area. There may be a hurricane approaching. o j

I was wrong about using the assets in other areas of their institution as collateral ... it's only the assets which have had certificates issued and which are lodged in their safe, under the jurisdiction of the Line of Credit. The mutual fund managers issue certificates without charge, and when you turn certificates in to their local office ... be sure to get a receipt. I turned one in some time ago and had them make a photocopy, then sign the pc as having been received. Later there was some question as to whether I had it ... or they did. When I ask my stockbroker to have certificates issued for stocks that I own, there's a substantial fee for each stock - usually $35.00 - 50.00, more often the latter. The rate that that the lender would charge me on my Line of Credit now is 4.75% ... which is bank prime. Someone told me the other day that on his Home Equity L O C, he's paying bank prime minus 1% ... so I'm going to ask my lender whether such a rate is available on mine ... and if not, why not? If they can't offer a better rate, then I ask my friend who his lender is, pay them a visit and ask whether, if my LOC is backed by stocks and mutual funds, am I eligible for bank prime minus 1% ... and if they say that's O.K., then I go back to my current lender and offer that information, seeing what response they may make. If they can't alter the rate, I have a choice s to whether to continue with them or to take my assets to back an L O C with the other institution. ole joyful

A couple of thoughts: - the bank probably is not counting that third rental income because you don't have it. Renting is speculative. I don't know what the rental market is like on LI anymore, but around here it is not uncommon to see "For rent" signs on apartment buildings for months on end. There also are the expenses incurred as a landlord -- it's not all an income stream and that's why the bank discounts the income. - another bank (a smaller, hungrier one) or even a credit union (if you can belong to one) might be a better bet for your business. - a bridge loan might work for you; it would go on the equity you now have in your properties and carry you until the rental income is a reality.

Yes, a home equity loan and a second mortgage are practically the same thing. You will see lenders using both terms. Technically, a home equity loan would not have to be a second mortgage. For example, if you owned your house free and clear (no mortgage), a loan against it wouldn't be a second mortgage, but would be a first mortgage. But the key point to remember is that whichever term they use, they are placing a lien against your home which is securing the loan. The best place to shop for this type of loan is at financial institutions where you currently do business or that are known to you. The first place to check is the mortgage company that holds your first mortgage. They often offer good deal to current customers. That's not to say that some of the lenders who advertise for customers aren't offering good deals -- some are -- but you have to look especially carefully at the closing costs and other fees with lenders who do a lot of mass market advertising. (Of course, you need to check these fees with any lender.) Often lenders will roll the closing costs back into your loan, so that you may get a check for the $10,000 you are seeking, but you may actually be borrowing more than that. In some cases, quite a bit more. Often a good time to get a home equity loan is when you refinance your home. If you are currently paying above market interest rates, consider refinancing and obtaining a home equity loan at the same time from the same lender you refinance with. Often in this case they'll give you a home equity loan with no additional closing costs. As far as the rates you've been quoted, the 4.75 percent seems closer to what I see being offered around where I live. The rates should apply to any amount of loan, not just to large amounts. In fact, many lenders will offer you a home equity line of credit instead of a straight home equity loan. Instead of giving you a check for the amount of your loan, you'll get a check book which allows you to write checks against your line of credit. This is preferable because you don't start paying interest on the money until you actually need it, and if you never need the whole $10,000 available in your credit line, you never actually borrow it. The balance on your home equity line of credit can go up and down just like a credit card balance, and you pay interest on just what you owe. With any loan, just be sure to understand all the fees and costs associated with it. Some lenders, especially those who advertise in the mass media, try to downplay or even hide the fees, and this can mean that what looks on the surface like a good deal isn't such a good deal once you dig down and see what you're really paying.