Taking out a Second Mortgage allows you to access cash from the equity in your home. Second Mortgages are placed simultaneously or any time after your first mortgage and require a second monthly payment in addition to your original loan.
The majority of Second Mortgages come at an adjustable rate with a higher interest rate when compared to your first mortgage. This is due to the high risk factors associated with a Second Mortgage such as foreclosure, for example.
You may use the cash from a Second Mortgage in any way that benefits you. For example, you may use the funds to finance a home improvement or an educational advance. You may be able to consolidate debt. Also the interest paid on these loans may be tax deductible; please consult your tax adviser.
Currently, there are very few lenders offering Second Mortgages. To find out if this is the right option for you, Start a Conversation with Options Financial Residential Mortgage today.