A mortgage is defined as a second mortgage because it is recorded after
there is already one mortgage recorded against the property. The amount
does not matter, only the date of recording. You can get a second mortgage
for various reasons. The reasons usually are: to get cash out to build a
pool, buy a boat, buy another property, consolidate debt (click
to learn on debt consolidation), establish an equity line of
credit (click to learn on equity
lines of credit), etc.
Whatever the reason, the borrower must qualify for the new payment on
the second mortgage as well as their existing payment on the first mortgage
plus any other long-term debt. Second mortgages can be done with little
or no out of pocket cost. The less your total loan to appraised value,
the better interest rate you will receive. If your not sure what your
property might appraise for, we can get the information for you from one
of our appraisers.
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