All the information you need to make an educated decision
Home ownership allows you the opportunity to use that home as collateral for a second mortgage. Second mortgages can be used for anything that requires payment including high-interest debt, home improvement, entertainment, college funds, etc... The interest rate of a second mortgage is normally much lower than that of personal loans or credit cards because there is very tight competition in the lending industry.
Second mortgages are secured against your home, and your existing home equity is used to fund the loan. Your available home equity is the value of your property minus your mortgage balance. Depending on your credit profile, some lenders will allow you to borrow up to 125% of this equity in a second mortgage. (Grab your credit report here).
When choosing the best debt solution for you, keep in mind that a second mortgage usually carries a higher interest rate than the first. If your current mortgage rate is higher than you would prefer, mortgage refinance may be a better option for you. Common alternatives to second mortgages include home equity loans and home equity lines of credit. To get more home equity info, go here to see if a home equity loan or home equity line of credit might be a better choice for you.
Here at Debthelp.com, our extensive network of lenders can help you find a great rate on your second mortgage. To start an online quote through our solution center, follow the link provided below.