Question:

Can you give some more second mortgage information?

Answer:

Second mortgage information that is important to know includes rates and second mortgage loan alternatives.

In the past, taking a second mortgage was considered shameful and a sign of financial hardship. Now, everybody is using a second mortgage or a home equity loan or line of credit to tap home equity. Nowadays, due to multiple second mortgage/home equity products, and significant competition on the part of lenders to attract more customers, obtaining a second mortgage is as easy as first grade math.

Getting A Second Mortgage

The only thing to remember is that your home is used as collateral for the second mortgage loan and the ease a loan can be acquired poses a risk that equity may be exhausted without proper planning and your budget may fall astray.

Before taking a second mortgage on your house, you should collect some more information and different quotes. Second mortgage loans are used to cash the difference between your home's value and the balance owed on the first mortgage. As second mortgages carry higher rates, some people prefer to refinance altogether. However, refinancing may be more time and money consuming compared to getting a second mortgage. Ask your lender for more information on second mortgages.

A second trust can come as a pure second mortgage loan, as an equity loan or a line of credit. Currently, home equity lines of credit (HELOCs) seem to have highest popularity as they offer greatest flexibility and repayment plans.

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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