Second mortgages are normally used in conjunction with a primary loan. Typically the secondary mortgage will have a term of no less than five (3) years with interest only payments. While additional mortgages can be critical in some situations, you must carefully consider your ability to pay the primary, plus secondary loan.

Second Mortgage Scenarios

• Maybe you’ve bought a home and now you want to fix it up a bit. Remodeling is never cheap and you could use some extra money to pay for the costs of remodeling. Then you need a second mortgage.

• Maybe you want to refinance your second mortgage loan – you can do that too. You can get the cash you need for all your home improvement needs.

• Maybe, you don’t need the loan to fix up your home, but you need it to pay off your credit card bills or refinance another mortgage. The finance charges alone can seem overwhelming. Don’t worry you can receive the money to pay off your bills.

Second mortgages give you the money you need to handle all of your expenses. You have a regular mortgage, now it is time for a second mortgage. You can apply for a second mortgage and be one step closer to getting the money you need to reach all of your goals.

The Second Mortgage Advantage

The most frequent use is a secondary mortgage that reduces the Loan to Value (LTV) of the first loan in order to allow you to more easily qualify for the loan. A good example would be where the primary lender or first mortgage holder will only lend 70% LTV and you only have a 20% down payment. A second mortgage can be used to make up the difference.

Available Payment options

Some payment options that will help keep your immediate payments down and defer the costs of the mortgage include: interest only payments, annual payments, balloon payments, etc. This should give the property time to appreciate and thereby allow you to refinance and consolidate both the first and second mortgages at a later date and at a lower LTV.

If you think a second mortgage is the right move for you, please call us today for more details. We will be happy to help you.