WHAT IS A SECOND MORTGAGE LOAN?
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 your actual mortgage and/or to consolidate high interest debts;
- Renovate your home;
- Pay for judgement, tax debts that resulted on a lien on your property;
- Pay for unexpected expenses;
- Fund your 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.