Second mortgages are loans placed in second position on the property title, which can be used to reduce your monthly debt payments, make home improvements, or get cash out.
A second mortgage can also assist you in purchasing a new home for up to 100% of the appraised value.
Similar to other loans, such as, a home equity loan, a home equity line of credit, a home improvement loan, or a debt consolidation loan, the common factor is that the lender requires them to be secured by a second mortgage lien.
The second mortgage lender is sure to charge higher interest rates as their risk is higher. In the case of default, the second lender will receive money only after the ‘sale proceeds’ of your house, cover the entire first mortgage amount.
In cases where the sale amount is insufficient to pay the first mortgage, the second lender is loses the entire credit amount, and does not gain or earn anything from the mortgage loan.
Second mortgages are popular for consolidating credit card debts, and there are 2 ways to save money: By reducing your rates and payments, and by converting compound interest into simple interest. The repayment amount is higher as the rate of interest is also higher than the initial mortgage amount.It is better to use such bulky funds for heavy expenditures. The application and the processing details are the same as that of the first mortgage loan. These loans are in a way an extension over the first mortgage loan.
Please contact me by phone or email. I will be delighted to discuss all available options for you!
“One final mention has to go to the mortgage broker Clint referred me to, Marla Daniels. She is beyond amazing…she went above and beyond. Marla saved me over $5000.00 in penalty mortgage fees.She just took me under her wing and fought for the under dog against the big money people. Thanks to her I didn’t have to pay them anything.Thank you Marla! Everyone should use your services !