2nd Mortgage

So, you’re thinking about your options.

You’ve determined that a 2nd mortgage is worth looking in to.

It’s overwhelming, confusing and downright daunting, the mortgage process.

We understand that.

But at Mortgage Foundation, we are determined to navigate you through.

You can actually qualify for a 2nd mortgage more easily than you might think. It is just a matter of talking to the experts and having them go to bat for you.

So, what is a 2nd mortgage and how does it differ from a conventional mortgage loan? How do you know if you can get approval?

By and large, a second mortgage is taken out after the first (obviously), and has a lien position subordinate to that of the initial loan. But how that really applies to you is that it is secured against the same assets as the initial loan. It’s based on the amount of equity or interest or ownership you have in your house or your condo.

In other words, a 2nd mortgage is based on the difference between the current value of the property and the amount you owe on it.

You can use a 2nd mortgage for anything you want, and people conclude that a wide variety of things constitute the best uses of their money.

But a mortgage of this type is typically arranged for financing improvements to one’s home, or freeing up cash to pay for things like college tuition, or even to consolidate one’s outstanding debt under the umbrella of lower mortgage rates.

Speaking of mortgage rates, a 2nd mortgage carries a higher rate than a conventional first loan in many cases. So it’s important to understand all aspects of this financing option and how you can be best prepared to get one into your budget.

Whether you are interested in a conventional second home loan or want to know more about your second mortgage refinance options, there are a dearth of products that might work on your behalf. Talk to us about them today. Let’s get on it!