Question:

When should I choose a commercial second mortgage?

Answer:

Commercial second mortgage is often considered a financial tool to provide additional funds towards a primary loan. For example, you have 5 percent available for the down payment and have provided 70 percent from a lender, the remaining difference can be easily covered by a commercial second mortgage.

The advantage is that a commercial second mortgage will allow for minimum payments, or interest-only payments for at least several years, giving a chance to the property to appreciate in value.

This is how with a commercial second mortgage you can still get the property and keep your immediate mortgage payments very low. When the term of the second mortgage expires, the property should have appreciated and you will most often be able to refinance later at a better rate, consolidating the two of your mortgages.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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