Question:

How to get a second mortgage?

Answer:

Before you think of getting a second mortgage, you should now how much your house is worth so that you know how much you will be able to borrow on top of your first mortgage. Before you find out how to get a second mortgage, you will have to know some things.

Things to Know before Getting a Second Mortgage

You will have to know how much you need to borrow and if your equity will suffice. Also, you should know if you could afford the second mortgage payments, run a house appraisal to estimate your equity and if home is appreciating. Thumb of rule is avoid taking over-equity cash as you may not be able to pay it back, especially if house is depreciating in value.

Discuss with the lender if you will need a PMI or even whether it will be better to refinance your first mortgage rather than get a second mortgage. If you are getting a second mortgage with your original lender, you might even get some fees and closing costs waived, get better rates and there won't be lenders crossing out on in case of foreclosure.

With a second mortgage you will be getting higher rates than with a first mortgage. Good news is you won't be paying tax and insurance with it as they are already paid with the first mortgage.

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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