WHAT IS A SECOND MORTGAGE LOANS?
It’s simply another mortgage on your home – a loan secured against the property. The term “second” indicates that the loan does not have priority on your home in case you default. Instead, your first mortgage has priority and would be paid before any funds go towards the second mortgage. You can use the cash from a second mortgage any way you wish–for example, to consolidate your debts, to make home improvements, pay for tuition, buy a vehicle, or finance a vacation, etc.
Why Choose a Second Mortgage?
- To get current on their actual mortgage and/or to consolidate high interest debts;
- Renovate their home;
- Pay for judgement, tax debts that resulted on a lien on their property;
- Pay for unexpected expenses;
- Fund their business or to invest.
- Limited documentation required;
- Approval only based on your home equity;
- No credit check or proof of income required;
- A second position mortgage is advantageous if you currently hold a favorably low rate first mortgage and do not want to discharge due to penalties, fees, etc.