There is a limited time left to take advantage of historically low interest rates before they return to normal. Don't miss the era of home refinancing - waiting any longer to secure a second mortgage could cost you hundreds or thousands of dollars! Get a Second Mortgage Quote and find out what amount for a cash-out loan you qualify for.
Are you one of the millions struggling to stay afloat financially - or envious of others who seem to be on a path towards financial freedom? Have you considered improvements that could add aesthetic as well as financial value to your home, such as a remodeled kitchen or room addition? Are you drowning in high-interest credit cards with balances that never seem to drop? A second mortgage could be the answer to your worries!
Home refinancing could be just the answer that you're looking for! With a second mortgage from Mortgage Loan Outlet, you can access the equity in your home to fund those improvements, consolidate those debts, and even finance large purchases, such as your child's education or a dream vacation. Time is money, so don't wait any longer to begin to realize your financial dreams!
Using your home to borrow money is a major advantage of home ownership.
Until just a few years ago, however, lenders put tight limits on the amount
and circumstances under which you could borrow such funds. In fact, taking out
a 2nd mortgage
on the house carried some stigma with it, a signal that you were in financial
trouble. No more. These days, getting a second
mortgage or home equity loan is much easier and there is a good selection
of loans available. Rates have become more competitive--in some cases well below
the prime lending rate, the traditional benchmark for second-mortgage
rates. You can even turn the equity in your home into a line of credit,
so you can borrow against it whenever you need to. Remember, though, that your
house is the collateral for such loans. It's important to choose the best program
for your budget--and your long-term financial health.
The Second Time Around
A second mortgage
is any loan made in addition to a first mortgage, and is based on the amount
of equity you have accumulated (that is, the difference between what you owe
on the house and its current market value). Most people take out second
mortgages to pay for home improvement projects, cover their children's college
tuition, or for emergency purposes (including debt consolidation). If you've
accumulated sufficient equity, another alternative is to refinance your house
and borrow more than your current loan balance. When interest rates are low,
refinancing may make more sense because you usually pay a higher rate on second
mortgages than on first loans. Underwriting guidelines are looser for second
mortgages, however, so it usually takes less time and effort to get a home equity loan than to refinance your 1st mortgage. A 2nd
mortgage may also have lower transaction costs, so even with a higher interest
rate, some second
mortgages may cost less in the long run than refinancing.
Choosing a Second
If you decide to get a 2nd
mortgage, you have three options: a traditional second
mortgage, a home equity loan or a home equity line of credit. Interest is
deductible in all three cases, with some limits. With a home equity loan, you borrow a fixed sum to be paid back monthly over
a set period of time. The amount you borrow is combined with your existing first
mortgage, so it's usually limited to 75 to 80 percent of your home's appraised
value. A home equity line of credit sets a maximum loan amount for the sum of
the first and second loans, typically 75 to 85 percent of the appraised value
of the home. You can draw upon this equity line at any time, and repay the loan
without making regular payments, during a set period of time (usually five years).
Consider all your options before you decide.