Second Mortgage

Using your own home to borrow money with a second mortgage is a major advantage of owing a home. Until the recent past, however, second mortgages lenders put very restrictive limits on the dollar amount and situations where you could access your equity with second mortgages. Believe it or not, taking out a second mortgage on the house was considered a sign that you might of been in financial dire straights!

Those days are long gone. Today getting second mortgages or home equity loans ares much easier and there are many loans available. Rates have become more much more competitive. In certain instances below the prime lending rate, the usual benchmark for second mortgage rates. To discover more about how second mortgages can help your finances, please click here:

Second mortgages are a loan made in addition to a first mortgage, and is limited by the amount of home equity you have or the difference between what you owe on your mortgage and your home's market value. Most homeowners use a second mortgage to pay for home improvements, college tuition costs, or for debt consolidation.

If you choose second mortgages, you have three options: a traditional second mortgage, home equity loans or a home equity line of credit. Interest is usually tax deductible in all three cases, with certain limits. With a second mortgage or home equity loans, you borrow a fixed amount that's paid back monthly over a period of time. The amount you borrow for your second mortgage is added to your existing first mortgage.

Tax Information