You may have heard of the term “second mortgage” before, but what exactly is a Kitchener Second Mortgage?
A second mortgage is basically a secondary loan that is taken out on a property that is already being mortgaged. This additional loan can then be used to finance:
- Larger Purchases
- First Mortgage or Tax Arrears
- Higher interest debt
As you can see, as long as you are a homeowner with a current mortgage, a second mortgage can be the answer to a lot of large financial questions.
In order to know whether a Kitchener second mortgage is really the best option for you, it is important to discuss your current situation with a qualified and experienced professional, as you consider both the advantages and disadvantages of this financing option.
One of the many benefits of obtaining a second mortgage is that you are able to avoid any fees that would be associated with making changes to your original mortgage. When you secure your second mortgage, your first mortgage will remain unchanged saving you money and providing you with the stability and security you are used to.
Second mortgages are however typically associated with slightly higher interest rates because there is a greater risk to the lender with a second mortgage than with the original mortgage. These rates are still usually lower than most credit card rates, which is what makes second mortgages such a great financing option for current homeowners.
To qualify for a second mortgage, your current equity and income, as well as your property, will all be analyzed and taken into consideration. Credit is not as big of an issue, but just as with your original mortgage, your lender will want to make sure, to the best of their ability, that you will be able to make your monthly mortgage payments and your property is considered as collateral on the loan.
It is highly recommended that you have a plan in place as to how you intend to pay off your loan as you consider obtaining a Kitchener second mortgage. At Altrua financial, we want to see all of our clients achieve financial success, and can help you make a financial plan and obtain your second mortgage.
If you currently have expenses that you need additional funds to pay, give us a call today! We can’t wait to help!