The team of mortgage brokers at National Lending Link can connect you with private lenders to secure a second mortgage that meets your needs. Whether you are dealing with unexpected expenses, want to clear some of your debts, or would like to fund a home renovation, there are a range of affordable borrowing options available to you if you own your home.
What is a Second Mortgage?
Put simply, a second mortgage is when a lender allows a property owner to borrow money on their home which already has a mortgage. This option allows you to get a loan using the equity in your home. The amount you are able to borrow will depend on how much equity you have built up. Your home’s equity is calculated based on the current value of your home, minus any debts you have against it, such as your first mortgage. For example, if your home is worth $400,000 and your first mortgage is $250,000, you have $150,000 in available equity. By tapping into this equity, you will be able to borrow money at a lower rate than many other forms of lending.
Should you default on your mortgage payments, your lenders may be able to repossess your property in order to pay off the debt. The order in which you borrowed each mortgage determines in which order your lenders will be paid out. Your first mortgage lender will be paid out first, followed by the second mortgage and so on. For this reason, second mortgages tend to have a higher interest rate as they are less likely to be paid out should you default.
Why Choose a Second Mortgage?
Many people just like you choose this option due to their low interest rate. Typically, your second mortgage will have a fixed interest rate that is much lower than that of a credit card, making it an attractive and affordable method of borrowing.
Why do our customers choose second mortgages? Here’s a look at just some of the reasons why you might opt for a second mortgage to get the money you need:
- Debt Consolidation
- Home Renovation or Construction
- Repayment of Property or Income Tax Arrears
- Repayment of Mortgage Arrears
- Tuition Payments
- Emergency Expenses
- And Much More!
Our specialists can evaluate your financial situation to determine which second solution is right for you. Contact Richmond Hill’s brokerage experts at National Lending Link today to begin your application. Call 1-855-915-LINK (5465) or apply online now!