A second mortgage is essentially another loan that’s taken against your home by a reputable lender.
Similar to your home’s mortgage, a second mortgage is also leveraged against your home for a specified period of time. This loan amount is given to you in a lump sum and individuals make a fixed payment every month to pay the money back.
Over the years more and more individuals have been seeking second mortgages to help pay for expenses. Although second mortgage interest rates tend to be higher, there are some benefits in taking out a second mortgage.
Some of the reasons individuals may opt to take out a second mortgage on their house include:
A second mortgage means that you’ll be making added monthly payments in order to return the money loaned. The added expense of paying off a second mortgage is important to factor in when deciding whether to take out a second mortgage especially since you risk losing your home if you can’t pay it back.
Although there are risks in taking out a second mortgage, they’re not without reward. If you’re looking to take out a second mortgage on your home, or if you’d like to speak with a mortgage expert to decide if it’s right for you, be sure to give First & Second Mortgages a call today at (403) 543-0927.