Many people use a second mortgage to generate much needed funds. It is just a loan on property owned by you. However in case you default on payments your first mortgage would have legal preference on receiving payment than the second mortgage.
If you need a second mortgage it will be easiest to obtain it from the bank, credit union, or institution you are already with. The other alternative is to source it from the same lender who has given you your primary mortgage. However, when you avail of a second mortgage, the fees charged for appraisal, application and other services, as well as closing costs are much higher.
Be financially astute.
Don’t take the first second mortgage rate offered. Make an effort to do a comparison of rates offered by one bank, one credit union, and one or two lenders. Avoid what are known as default penalties in the agreement, even a clerical error could result in the rate rising rather steeply. Ensure that there is no “lock in” period and the mortgage is not bundled together with a voluntary insurance policy. I
t is crucial for you not to rush through availing a second mortgage and take the time off to read the contract properly and scan the market for a suitable rate.
Mortgage Loan Rate provides detailed information on Mortgage Loan Rates, Adjustable Rate Mortgage Loans, Second Mortgage Loan Rates, Best Mortgage Loan Rates and more. Mortgage Loan Rate is affiliated with Free Mortgage Loan Loads.
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Thursday, May 18, 2006
An Introduction To Second Mortgage Loan Rates
Posted by Robert Nichols at 11:54 AM
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