What are 2nd Mortgages in
Cambridge?
A
2nd mortgage is a mortgage taken out on a property that already has
a mortgage associated with it. Like a 1st mortgage, a 2nd mortgage
is a loan secured by your home, and if you fail to make payments, the lender can
seize your home and sell it to repay the loan.
2nd mortgages in Cambridge can be used
in many ways, for example: to make home improvements, pay for tuition, or purchase a vehicle or a second home.
When Do 2nd
Mortgages Make Sense?
With a 2nd mortgage, homeowners can translate the
value from their home into a larger bank account. Instead of having home equity
tied up, the funds can be spent or invested however the homeowner desires.
A few of the reasons 2nd mortgages in Cambridge
are worth considering, include:
- They’re
Easy to Obtain – Many homeowners run into trouble refinancing their
mortgages because of personal finance problems. 2nd mortgages are
based more on your property’s equity than your financial situation, and
approval is much easier than a standard loan or refinance.
- Unlimited
Uses for Money – Rather than having your home's equity just be a number
on paper, taking advantage of a 2nd mortgage is a way to put that
money to work. Funds can be used for home repairs, investment, or to pay down
debt.
- They Keep
Your First Mortgage in Place – With interest rates beginning to
increase, many Canadians are holding back from refinancing their loans because
they do not want to lose out on favourable rates and terms. This prevents many people from cashing out on their home’s value. By taking a 2nd mortgage
on your property, you are able to retain low monthly payments on your original
loan and still access your property’s equity.
The
possibilities are endless with 2nd mortgages in Cambridge and more homeowners
are discovering the many benefits.