Second Mortgage

Second mortgage loan can be an excellent way of using the current equity in your home, without refinancing your original mortgage. Second mortgage rates are generally higher than a fist mortgage. This is primarily due to the fact that they are subordinate to the first home loan.

Benefits
These loans have a fixed interest rate and are very similar to home equity loans, or home equity lines of credit. One of the main differences is the fact that you can usually borrow more with a 2nd mortgage than the latter. 2nd Mortgages are used often for debt consolidation, due to their much lower rates when compared to credit card interest and other creditor bills.

When Sould Be Used
In a home purchase, and a few refinance cases, second mortgages are taken out in conjunction with a conventional first mortgage in order to avoid the payment of private mortgage insurance (PMI). This is beneficial to the borrower usually because the interest on a 2nd mortgage is tax deductible in most cases, while PMI is not.

In order to decide what is best for you, please contact one of our loan specialists for a free consultation and mortgage quote. We will gladly answer all of your questions concerning all of your home loan needs. Call us at .

By State
Florida | Pennsylvania