A second mortgage can be used to reduce your monthly debt payments, make home improvements or free up cash for whatever you want.
Like a home equity loan or others of its type, the lender requires it to be secured by a second mortgage lien.
Because the lender is at a higher risk in case of default (since they will not receive any money from the sale of the house until the first lender is paid, and if there is no money left over, loses their money), the interest rates are higher.
You can also use a second mortgage for consolidating credit card debts by reducing your rates and payments and converting compound interest into simple interest. Since the repayment amount is higher than the initial mortgage, it is better to use these funds for heavier expenses.
For more information please contact Scott Dawson.