Mortgage & Real Estate Articles

Do you have a second??

Second mortgage reputation has drastically changed from a burden to a lifesaver. However you should know what kind of second you want. A second mortgage is guaranteed by your house so rushing into one is not the answer. You cannot have a second mortgage unless you own a house. Strangely enough some people don’t know that. The current competition in the market is allowing some very competitive rates on second mortgages. When deciding on a second you should take into consideration:
A. your budget
B. job security
C. long term income
While your first mortgage is given according to your financial credibility (credit), your second mortgage is given against the same assets of the first loan. Here owner’s equity is taken into consideration which is determined by time in most cases. Second mortgages carry higher interest rates than first mortgages. They also require fewer documents.
Second mortgages are usually attractive for many reasons; some of which are: home improvement, college tuitions, debt consolidation, or for certain unforeseen emergencies.

In choosing a second mortgage, you should compare financial institutions for rates or the type of a second. You have to decide whether you want a traditional second mortgage or a home equity loan, or a home equity line of credit. For more information visit our website on a regular basis.

Noel Francis

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