Is a Second Mortgage the Right Solution for You?
Many people choose to get a second mortgage on their home when they feel like they have no other options. The experts at Mortgage Connection have years of experience and are dedicated to helping you craft the right financial strategy for your situation.
We are committed to helping you decide if a second mortgage is the best choice for you by providing you with the information you need to make an informed decision, and walking you through the process from beginning to end. When you rely on Mortgage Connection’s guidance, you can trust that you’re taking the most beneficial path.
The Second Mortgage Process
Step 1: Meet With a Mortgage Broker
First, we need to know what your goal is and what sort of equity you already have in your home. We’ll take a look at your current mortgage, ask you some questions about what you’d like to accomplish, and help walk you through the next steps from there.
Step 2: Submit an Application
Even though you’re looking for a second mortgage instead of purchasing a new home, you’ll still need to qualify again as if you were applying for a new mortgage. We’ll take you through the application, help choose the best lender and mortgage product for you, and gather the necessary paperwork. We might also have your home appraised to determine its current value.
Step 3: Approval & Funding
Once you’ve been approved, it’s time to connect with a lawyer to finalize the paperwork. You can choose the lawyer yourself, or use a title company assigned by the lender. Regardless of who you choose, your lawyer or title company will make sure your current lender is paid, your new lender is added to the title, and that any and all other conditions have been met.
Step 1: Meet With a Mortgage Broker
First, we need to know what your goal is and what sort of equity you already have in your home. We’ll take a look at your current mortgage, ask you some questions about what you’d like to accomplish, and help walk you through the next steps from there.
Step 2: Submit an Application
Even though you’re looking for a second mortgage instead of purchasing a new home, you’ll still need to qualify again as if you were applying for a new mortgage. We’ll take you through the application, help choose the best lender and mortgage product for you, and gather the necessary paperwork. We might also have your home appraised to determine its current value.
Step 3: Approval & Funding
Once you’ve been approved, it’s time to connect with a lawyer to finalize the paperwork. You can choose the lawyer yourself, or use a title company assigned by the lender. Regardless of who you choose, your lawyer or title company will make sure your current lender is paid, your new lender is added to the title, and that any and all other conditions have been met.
Understanding Second Mortgages
What Is a Second Mortgage?
A second mortgage means you are getting a loan and using your house as collateral. It’s the same as a first mortgage, but it’s registered in the second position on title. Like any type of loan, there are advantages and disadvantages to taking out a second mortgage. Our Mortgage Connection experts are here to help you weigh your options and decide which plan is right for you. Click here if you’re looking into a mortgage for an investment or vacation property.Advantages of a Second Mortgage
Chances are that your home is worth quite a bit of money, which means that a second mortgage may allow you to borrow a pretty significant sum. The exact number you can borrow varies depending on the lender, but it could be up to 80% of your home’s value or more. Using your home as collateral also means your interest rate may be relatively low, although it will be higher than a traditional first mortgage.Disadvantages of a Second Mortgage
The most obvious disadvantage of a second mortgage is that they tend to be at a higher rate than a first mortgage. Often a second mortgage is used as a temporary solution to access funds when refinancing a first mortgage doesn’t make sense or isn’t an option. It often makes sense to consolidate your first and second mortgage as a new mortgage when your second mortgage renews. It’s also important to remember that, like with any mortgage, there are costs associated with a second mortgage. Fees, appraisals, and legal costs are part of a second mortgage application.
A second mortgage means you are getting a loan and using your house as collateral. It’s the same as a first mortgage, but it’s registered in the second position on title. Like any type of loan, there are advantages and disadvantages to taking out a second mortgage. Our Mortgage Connection experts are here to help you weigh your options and decide which plan is right for you.
Click here if you’re looking into a mortgage for an investment or vacation property.
Chances are that your home is worth quite a bit of money, which means that a second mortgage may allow you to borrow a pretty significant sum. The exact number you can borrow varies depending on the lender, but it could be up to 80% of your home’s value or more. Using your home as collateral also means your interest rate may be relatively low, although it will be higher than a traditional first mortgage.
The most obvious disadvantage of a second mortgage is that they tend to be at a higher rate than a first mortgage. Often a second mortgage is used as a temporary solution to access funds when refinancing a first mortgage doesn’t make sense or isn’t an option. It often makes sense to consolidate your first and second mortgage as a new mortgage when your second mortgage renews.
It’s also important to remember that, like with any mortgage, there are costs associated with a second mortgage. Fees, appraisals, and legal costs are part of a second mortgage application.
The Mortgage Connection Difference
Mortgage Connection is here to help you with all your mortgage financing needs. Money matters require expertise, experience, and connections. We pride ourselves on finding solutions to whatever financial scenario you bring us.
Our team simplifies and streamlines the process as much as possible, keeping you totally informed every step of the way. Mortgages can be intimidating, but they don’t have to be. Let Mortgage Connection do the heavy lifting and make it a great experience for you.
Our team stands on an incredible foundation of experience, which can make all the difference when it comes to saving you money. As experts in our field, we’re dedicated to continuing our education and staying current with the market’s latest offers and products. Through constant learning, we can better meet your needs, work towards your goals, and guide you through the process.
Think Mortgage Connection, and discover a truly different mortgage experience.
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Contact Mortgage Connection for more information
Telephone 587-830-2059info@mortgageconnection.ca
Main Office: 110 1121 Centre Street NW, Calgary, AB T2E 7K6
Secondary Address: 1417 9 Ave SE, Calgary, AB T2G 0T4
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Thunder Bay Phone Number: 587-830-2059
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