Second mortgage
Second HipotecasPropiedad housing has the advantage that allows you to make your home as collateral and borrow against it, taking half of the mortgage.
If you need money, sometimes half of mortgage is the answer. Second mortgages have different purposes, and described under different names. This page is a basic overview of second mortgages, how they are used and disadvantages of second mortgages.
Until a few years, lenders and banks had reduced the amounts and limits the circumstances that allowed him to obtain a second mortgage. In fact, half of the scandalous and the mortgage taken as evidence that you have financial problems. However, this situation no longer exists. There are a variety of loans available to meet your needs, and is much easier for half the mortgage on your house.
Second mortgage
The second mortgage interest rates in the market today are affordable, thanks to fierce competition. In some cases, the interest paid is well below the prime rate, otherwise a reference point for conventional loans second mortgage. The conversion of equity or ownership of your home in a line of credit is now possible. It allows you to borrow against your home when you need it. It is important to remember that your house will be pledged as collateral for the loan, so you must choose the best financial offer and maintain budgetary and long-term income in mind.
Second Mortgage Loan against the first
A second mortgage is a loan taken after the first mortgage and is insured against the same goods in the first. It is based on the amount of equity or interest in or ownership of the assets you have, based on the difference between the current value of the property and the amount you owe on. Second mortgages are arranged for various purposes such as financing home improvements, college tuition, consolidating debt or other urgent expenses. If you have collected enough money, another option is to refinance your home and borrow money to balance your current loan. Middle mortgage generally carries a higher interest rate than a first mortgage. So if interest rates lower or principle, refinancing is a better choice. Since underwriting guidelines are less strict for second mortgages, it usually takes less time and effort to the average mortgage or refinance loan. Also half of subprime mortgage transactions, so despite higher interest rates on mortgages, second, in the long run, may be less expensive than refinancing.
Choosing a Second Mortgage
When choosing a second mortgage, you can usually choose between three types:
* A traditional second mortgage,
* A home equity loan, or
* A line of credit.
Moreover, a line of credit is a maximum loan amount for the entire first and second loan, usually 75% to 85% of the estimated value of the property. This is an open-ended line of credit, and you can withdraw cash against it at any time. It allows you to repay the loan within a specified period without complying with the regular monthly and strict deadlines. The treatments of all the options before deciding on its second loan - that is what is imported.
What is the half of the mortgage?
You may be familiar with a simple vanilla mortgage, so that is half the mortgage? It's just another mortgage on your home - a loan secured against property. The term "second" indicates that the loan is not a priority in your home if you default. Instead, your first mortgage has priority and would be paid before the funds go to the second mortgage.
How to use half your mortgage
Why would anyone risk their home mortgage in half? These types of loans are appropriate for the times when you have a lot of money. Credit can not be unlimited in their credit cards and find the money only out there is difficult.
There are a lot of equity or the value of the house. Against a loan, borrowers can increase lending. Also, second mortgages offer larger loans because the lender considers a loan against the house to be safe.
Some common applications for second mortgages are:
* Home Improvement
* Avoid private mortgage insurance (PMI)
* Debt Consolidation Program
* Purchase of additional housing
* The creation of a real estate line of credit (HELOC)
Some people use a second mortgage for other applications - and use are sometimes not wise. It may be tempting for a major source of mortgage money with half the faucet, but do not forget that you borrow against your home. In some cases, the mortgage is only half way to pay for a necessity.
Disadvantages of Second Mortgages
The main disadvantage with second mortgages is that you are risking your home with one. This is a serious risk: if you can not repay the loan, half of the mortgage can be catastrophic. Make sure your planned use of resources worth the risk you take by using half of the mortgage.
Another disadvantage is that second mortgages have slightly higher rates than senior mortgage. This is because the second mortgage is not paid until the first (in the case of a default). Because the loan is riskier than a normal vanilla mortgage, the rate is higher. However, the rate may be lower than alternative sources, such as credit cards.
Finally, you pay high rates of second mortgage. There are a lot of hoops to jump through and pay for services. Depending on the form you need and the time needed, not only can work half due to the charges of the mortgage.
Where to Find Second Mortgages
You will find the average mortgage almost everywhere. These are costly loans that lenders love. A good start is half the mortgage to buy a setting that is already working with - like your bank or credit union. Or you can try to get your second mortgage lender that has your primary mortgage. This way you can expect to save a few dollars in cost.
