SECOND MORTGAGE BENEFITS
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Down payments as low as 3.5%
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Lower credit score accepted
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Flexible qualification guidelines
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Fixed-rate and adjustable-rate loan options
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Refinance up to 96.5% current home value
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Cash out and debt consolidation financing
Second Mortgages Are A Great Idea For:
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Avoid or limit your down payment
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Avoid Private Mortgage Insurance (PMI)
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Qualify for a better rate on your primary first lien
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If you are selling a home you can use a second lien as a buffer until you sell your prior residence and then pay off the second lien and be left with a low rate first lien.
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It may provide the only way to finance the home under the payment terms you wish
Second Mortgage Opportunities
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Home Equity loan to consolidate debts or get cash
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Home Equity Line of Credit (Completely different than a home equity loan)
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Home Improvement
Second Mortgage Advantages
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Many are on 30 year fixed rate mortgages
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Some may have a shorter term like 15 or 10 years
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Many are on balloon notes like a 30 year fixed mortgage due in 15 years
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Some have adjustable rate terms
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Some may have interest only terms
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Due to the inherent risk for the second lien lender, second mortgages typically have rates 1% to 4% higher than first lien rates.