Second Mortgage Hamilton
Many homeowners are not aware of the fact that they can take multiple loans against their homes. The first loan, known as the first or the primary mortgage is usually taken while buying the house. The next loan against the same property, while your primary mortgage is still not fully paid, is known as the second mortgage in Hamilton. Having a good understanding of how second mortgages work can prove to be very useful when you need large funding for urgent expenses or when you want to enhance the value of your home through modifications. At Access Mortgage, we can help you secure a first, second, and even third mortgage, even if you are struggling with unsecured debt. We can also get you on the path of debt relief and financial freedom! Read on for more information about getting a second mortgage from Access Mortgage.
Key aspects of a second mortgage in Hamilton
A second mortgage is subordinate to the first one, which means that in the event of a default, the first mortgage will get priority in terms of repayment. Only after the first mortgage has been completely repaid from the sale proceeds, will the 2nd mortgage lender be able to recover the loan. A mortgage is always taken out against the equity in your home, and second mortgages are no exception. The loan amount that the second mortgage lender will offer you directly depends on the equity built up in your home. Interest rates on a second mortgage are higher than those charged on the first one. This is because the second mortgage lender is taking a higher risk, as they get second priority in the case of a default. So before you opt for a second mortgage, find out what the monthly payment amount would be and if you can afford it.
How can I benefit from a second mortgage in Hamilton?
The cash that you get when you take out a second mortgage can be used for any purpose. Homeowners typically use the money to buy a new car, pay towards college fees, to remodel or refurbish the house etc. Home improvements add value to the house and guarantee a better price should you decide to sell the house in future. This means that you are using the money from an asset (your home) to increase the value of that asset itself. Those with mounting credit card debt can also take out a second mortgage for debt consolidation purposes to make repayments more affordable and manageable.
If you would like to know more about what a second mortgage in Hamilton can do for you, or how you can use it, please feel free to continue browsing through our Access Mortgage website. Click here to find our contact information and to fill out our contact form.