A second mortgage grants homeowners the ability to borrow equity from their home to gain financing. These funds can be used to pay bills, enhance the property and more.
The second mortgage is connected to the equity your current mortgage has built up, so it’s crucial to understand the ins and outs of a second mortgage before deciding to use it.
To take out a second mortgage loan, most lenders require a decent amount of equity to be built up on your home which is the amount you’ve paid towards the principal balance (the cost of the home plus interest).
After taking out the second line, you’ll need to have at least 20 percent equity still built up on your home. If you need this money fast, please note, it takes a few weeks for lender approval and the loan comes with fees.
If you’re unsure a second mortgage is for you, speak with your lender to explore your options and make adjustments as needed.
Christine Stahl and Pete Lommori combine their experience and skills to better serve their real estate buyers and sellers, making your transaction a successful one. Both Christine and Pete learned the business from the ground up and were taught the ins and outs of good real estate practices and procedures from their fathers – real estate brokers and owners. With two generations of real estate practice, Pete and Christine continue a family tradition as realtors helping buyers and sellers protect their investments time after time.