Second mortgages are a great way to consolidate bills, or get money out of your home to do repairs or remodeling. With a second mortgage, your interest rate will typically be higher than the first, simply because this loan falls in second place. What a second mortgage does is allow you to put the equity out of your home above and beyond your first mortgage. For example, if you have a $100,000 home and owe $50,000 on your home, you can take anywhere from 100% to $125% of the equity out of your home, in this case being either $50,000 or $75,000.
- Does not add a dime to your existing first mortgage
- Allows you to pay off your first mortgage in your expected time frame
- Taxes and Insurance are not needed on this mortgage