Second Mortgage in Burlington
As a homeowner in Burlington, one of your options when you wish to borrow money is to do so through a second mortgage. A second mortgage is a loan against the equity in your home (usually up to 80%). You make regular monthly or bi-weekly payments on your second mortgage just like you do your first mortgage. Unlike mortgage refinancing, getting a second mortgage does not require you to break your first mortgage, so there is no financial penalty when you get a second mortgage.
Why should you choose a second mortgage in Burlington?
There are many advantages to choosing a second mortgage over other types of loans in Burlington. Although the rates on a second mortgage tend to be a little bit higher than rates on a first mortgage, this form of loan is still much more affordable than unsecured loans.
Furthermore, if you have been building up equity in your home for some time, the amount that you can borrow with a second mortgage tends to be fairly substantial. Most lenders will allow you to borrow up to 80% of your home equity. So if you have $200,000 in home equity, you could potentially borrow up to $160,000 with a second mortgage.
Burlington homeowners use second mortgages for a variety of purposes ranging from consolidating high interest debt, to paying for larger projects such as a home renovation or starting a business.
How to get the best rates for second mortgages:
The better your credit is, the better rate you should be able to get on a second mortgage, but the real key toward getting a great rate is by working with a professional mortgage broker. Mortgage brokers work with dozens of lenders so they are able to shop around on your behalf to get you the best rate.
Even if you see a good rate directly through a specific lender, you mortgage broker may be able to negotiate a better rate with that same lender.
How to get a second mortgage even with bad credit:
If your credit is less than perfect, you may still be able to get a second mortgage by working with an alternative or private lender. Not only does your mortgage broker work with a lot of different lenders, they also work with many different types of lenders – some of whom specialize in helping those with damaged credit.
Advantages of using a mortgage broker for a second mortgage.
While it is possible to go out and secure a second mortgage on your own, there are several advantages to working with a mortgage broker including:
- Wide selection of lenders to work with including speciality lenders (bad credit, self-employed, etc.)
- A mortgage broker will help to get you the best rate possible on your second mortgage.
- A mortgage broker will help to keep you away from unreputable lenders.
- A mortgage broker will walk you through the process and answer your questions.
Contact us today!
Are you considering getting a second mortgage in Burlington? If so, we can help. Contact us today to speak with one of our brokers.