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 Second
Mortgages
Long-Term Second
Mortgage loans are a Best Quotes specialty. Home ownership
has the benefit that it allows you to use your home as collateral
and borrow needed money against it, by taking a second mortgage.
Up until a few
years ago, lenders and banks had curtailed the amounts and
restricted the circumstances that allowed you to get such loans.
In fact, a second mortgage was considered disgraceful and regarded
as evidence that you were suffering from financial hardship.
However, that situation no longer exists. There is now a wide
selection of loans available to fit your needs, and it's much
easier to get a second mortgage on your home.
Second mortgage interest rates
The interest
rates on the market are affordable today, thanks to fierce
competition. In some cases, interest payable is far below the
prime lending rate, otherwise a conventional yardstick for second
mortgage loans. Conversion of the equity or right of ownership of
your home into a line of credit is now possible. This allows you
to borrow against your property whenever you may need to. It is
important to remember that your house will be pledged as security
for such a loan, so you must choose the best financial deal and
keep your budget limitations and long term income in mind.
The Second
Mortgage vs. the First Mortgage
A second
mortgage is a loan taken after the first mortgage, and it is
secured against the same assets as the first. It is based on the
amount of equity or interest or ownership you have in that
property, thus based on the difference between the current value
of the property and the amount you owe on it. Second mortgages are
arranged for various purposes, such as financing home
improvements, college tuition fees, debt consolidation or other
emergency expenses. If you have gathered enough equity, another
option is to refinance your home and borrow funds in excess of
your current loan balance. Usually, a second mortgage carries a
higher rate of interest than a first mortgage. So if interest
rates are low or start decreasing, refinancing becomes a more
appropriate option. Since underwriting guidelines are less strict
for second mortgages, it usually takes less time and effort to get
a second mortgage than to refinance a loan. Also, a second
mortgage may have low transaction costs, so despite higher
interest rates on second mortgages, in the long run they may turn
out to be less expensive than refinancing.
Choosing a Second Mortgage
When choosing
a second mortgage, you can typically choose between three types:
- Traditional second mortgage,
- Home equity loan, or
- Home equity line of credit.
Home
Equity Line Tips
On the other
hand, a home equity line of credit sets a maximum loan amount on
the sum total of the first and the second loan, usually 75% to 85%
of the appraised value of the property. It is an open-ended line
of credit, and you can draw money against it at any time. It
allows you to pay the loan back within a set time period, without
having to comply with regular and strict monthly installments.
Consideration of all your options, before you decide on your
second loan - that's what is important.
Other second mortgage
products available include:
-
Revolving
Equity Lines of Credit to 100% LTV
-
Loan Terms to
25 Years
-
Fixed or
Variable Rate Programs
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No Equity 2nd
Mortgages to 125% LTV
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No Income
Verification
-
Cash Out or
Rate/Term Refinances
-
Great Low Rates
!!
Contact one of our Mortgage
Loan Representatives
today to learn more about these services.
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