A second mortgage is a mortgage on real estate that has already been pledged as collatoral for an earlier mortgage (first mortgage). The second mortgage has claims against this asset which are subordinate to those of the first mortgage.
Not infrequently, the second mortgage would be used to consolidate credit card debts, since it makes sense to pay the lower interest rates associated with secured loans, than to pay high credit card interest rates. This is a great strategy to utilize if you would like low interest costs and smaller payments. In other circumstances, a second mortgage can be employed to obtain a second property that the borrower would not otherwise be able to purchase.
Often with second mortgages the lender's primary concern is the value of the property they then consider each deal on a case by case basis.
Regardless of the situation, a professional mortgage broker can save you thousands of dollars and make the whole mortgage experience nicer, kinder, and gentler. Call us to see how easy it can be.