Applying For A Second Mortgage - What To Know
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Want To Know If You Qualify For A Second Mortgage?
Wondering if you qualify for a second mortgage? It all depends on the equity in your home and your credit.
This is where we come in handy! We will:
- help appraise your financial status
- access to over 90+ lenders including big banks, credit unions and financial institutions
- we partner with different private lenders that will help you obtain a second mortgage at a reduced rate
How About A Second Mortgage?
You already got a mortgage on your home.
But what happens in the case of any eventuality?
Often than not, you have heard people talk about a second mortgage. Perhaps you are aware there is an existing mortgage on your neighbor's home, yet they get to apply for a second mortgage. You might be wondering - How is that even possible? Chances are you are not alone. A little less than many homeowners today are unaware of the fact that they can get a second mortgage on their home.
Second Mortgage – What Is It?
A second mortgage simply put, is an additional mortgage taken against an already existing mortgage on your home. Here, while the first mortgage is still in effect, a second mortgage is given to the homeowner that runs concurrently with first.
How Does It Work?
Repayment follows installments over a period of time. However, the interest rate on a second mortgage is quite higher. Furthermore, you get the additional loan from a second mortgage lender based on the equity in your home. Practically, a second mortgage allows you 95% of the equity in your property.
Why Is The Interest Rate On A Second Mortgage Higher?
A second mortgage lender is at risk of losing money, hence the higher interest rate. Basically, he ranks behind the first mortgager. That is to say, in the case of any default, if your property gets sold he is considered second while the first lender is fully paid.
Why Do People Take On A Second Mortgage?
Have you tried accessing some of the equity in your home and your lender refuses? Perhaps a second mortgage is the way to go. You can use a second mortgage for anything from funding a child’s college education to making improvements on home, purchasing a car and more!
You don’t have to hit rock bottom with your finances. For more inquiries, feel free to contact us any time!
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We are so thankful for the amazing job Faizal did for us. He was persistent and his knowledge of the job help us gone through this difficult process of getting our first house. If not with him, we could have easily gave up. He explain to us everything and guide us from the very first day he work for us, until we close the property he was there with us. He started working for the mortgage approval on August 17, 2017 and He closed it on August 29, 2017. Wow! that is amazing, honestly we never thought it is possible but Faizal work so hard to get it done. I highly recommend him to my friends who are ready to get their first new house.
Erwin and Loida J.
It was a great experience working with Mr. Faizal Garasia who was able to help my brother acquire his first mortgage for a house even with the hurdle of a short term credit history.
Faizal is an extraordinary agent, his commitment to clients is admired. I have never felt so reassured while under such stress and feeling as if the is no solution to my problems. Faizal is a mortgage super hero and I would suggest him to any of my family or friends. Top agent in my book. Thank you Faizal for never giving up.
Faizal is clearly the best and most professional mortgage agent I have dealt with!
I would like to take this time to say a huge Thank You for all your efforts in helping Jared and I in our sale of Condo, and our purchase of new house. Your understanding and commitment made our transition easy. We will forever be grateful, and would recommend you and Dominion Lending Centres Mortgage House to all our friends and family. Also, if I could add, your persistence in the dealings with Equifax, to help clear up past situations, of my credit rating was of great value. I look forward to dealing with you again in the near future!