Second Mortgage
Home ownership allows you the opportunity to use that home
as collateral for a second mortgage.
The interest rate of a second mortgage is normally much lower than that of personal loans or credit cards because there is very tight competition in the lending industry. Second mortgages are secured against your home, and your existing home equity is used to fund the loan. Your available home equity is the value of your property minus your mortgage balance. Depending on your credit profile, some lenders will allow you to borrow up to 125% of this equity in a second mortgage. When choosing the best debt solution for you, keep in mind that a second mortgage usually carries a higher interest rate than the first. If your current mortgage rate is higher than you would prefer, mortgage refinance may be a better option for you. Common alternatives to second mortgages include home equity loans and home equity lines of credit. To get more home equity info, go here to see if a home equity loan or home equity line of credit might be a better choice for you. |
Second mortgages can be used for
anything that requires payment including high-interest
debt, home improvement, entertainment, college funds,
etc...
Queensland - New South Wales - Victoria -
Western Australia - South Australia - Tasmania - Northern
Territory
Brisbane - Sydney - Melbourne - Perth - Adelaide - Hobart -
Darwin
Important note: The information on this and all pages on this website contains a summary of basic information on debt and debt consolidation issues. It is not a substitute for legal advice. Some provisions of the law referred to may have important exceptions or qualifications. This document may not contain all of the information about the law or the exceptions and qualifications that are relevant to your circumstances. You will need a qualified professional advisor to take into account your particular circumstances and to tell you how the law applies to you.