What is a 2nd Mortgage Loan?
Benefits of 2nd Mortgage Loan
- You can use it to consolidate debt into one payment instead of making multiple payments each month.
- You can also use it to finance home improvements.
- Pay for college tuition or medical bills.
- If you need cash to purchase a vehicle and don’t have the funds available, this is an option.
What Applying Looks Like?
Our application process is simple. After you fill out our short form, we will contact you to collect the required documentation and move forward with the loan.
We evaluate each application individually and provide you with personalized attention. We will direct our focus on the property deal, so you can expect to submit minimal paperwork.
We’ll give you a quick pre-qualification the same day you submit your info for our loan program.
We want to make sure you don’t miss out on the next big investment opportunity.
We’ll give you a quick pre-qualification the same day you submit your info for our loan program.
FAQs
The interest rate on a 2nd mortgage is typically higher because the lender sees greater risk of default. The borrower has already used up their first home’s equity, so they have no other assets to borrow against. This means that if they are unable to make their payments, they will lose their house along with all of their other possessions.
Yes, a 2nd home loan may be tax-exempt if it is used for specific purposes such as making improvements to your primary residence or buying another home within one year of selling your current one. However, the tax exemption on 2nd home loans only applies to the interest portion of your mortgage payments. You are still responsible for paying taxes on any principal reduction.
You may qualify for a second mortgage if you have an existing first mortgage on your home and meet the lender’s underwriting guidelines. The lender will consider several factors when determining whether you qualify for a second mortgage, including:
- Your income, assets and credit history
- Your current debt-to-income ratio (DTI)
- Your credit score
- The value of the home you wish to purchase
- The amount and type of mortgage loan you have already applied for
- The property’s location
- Your employment history and stability
The lender will use this information to determine whether you can afford the new mortgage and how much of a loan you qualify for. If you need help understanding how to qualify for a second mortgage, contact us and one of our specialists will be happy to help.
