Second mortgage or remortgage is a secured loan that is taken against the same property against which a previous loan exists. These are also referred to as subordinate loans since the first mortgage is reimbursed before the second mortgage gets any money in case the loan goes to default. At present, second mortgage interest rates are affordable as in most cases rate of interest is far below the main lending rate. Moreover, converting the equity or right of ownership of a home into a line of credit is very much possible with second mortgage. These are the main reasons why second mortgage is becoming more and more popular nowadays.
Various types of second mortgages/subordinate mortgage/remortgage:
1. A traditional second mortgage
2. A home equity loan
3. A home equity line of credit (HELOC)
If you are planning to get a second mortgage, you should first identify the various pros and cons. Most importantly, you need to evaluate the need and determine what you are going to achieve if you go for a second mortgage. A number of factors determine how favorable a second mortgage deal you would get. Hence, it is better to consult an expert. An expert mortgage consultant will help you ascertain your need, and help you prepare yourself for an appraisal.
In fact, an appraisal is necessary for second mortgage, just as it is for the first mortgage. The appraisal will determine the financial obligations, both for the borrower and the lender. Visit www.castlemortgagegroup.com for all information on second mortgage. At Castle Mortgage, you will come across some of the most experienced consultant who will help you will all your needs that arise of a private mortgage insurance (P.M.I.) on second mortgage.
Myself webmaster of http://www.castlemortgagegroup.com dealing in all type of mortgage loans in Florida, Georgia & Alabama with home equity loans, Florida Mortgage Loans, refinance loans, constructions loans.
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