Setting up the Second

Enter the date that the second mortgage is to begin.  If you select the sale date as the first, all proceeds will be credited toward the cash required to close.  If the date that you select is after the date of the first - the proceeds (less points) will hit the income statement.

The LTV ratio will alert you if the proposed loan amount will cause the loan to value ratio to exceed the rate that you specified in the Global Drivers section.  The value is obviously time time driven, so if you see the error message above - you have two options.  First, you could lower the loan amount, or you could take the loan at a later date when values are presumably higher.  You could also change the driver entry, but that would defeat the purpose of staying within known guidelines.

Enter the desired loan amount for  the second mortgage

Enter the total number of months to amortize this loan.

Enter the total number of months (if any) that this loan will have an interest only provision.  If none, enter 0.

Enter the fixed interest rate for this loan.

Enter the total number of loan points for this loan.

Enter the total number of months to amortize the loan points.  This is typically for he life of the loan.  The model will adjust for unamortized loan points at the time of resale.