Do you need cash to renovate your home or make a large purchase? Are you short on cash in the bank? You may be able to tap into your home equity by taking out a second home mortgage. Your home is an asset and your equity in it is part of your wealth. Second mortgages allow you to access that wealth without selling your home. However, they do come with risk, as they use your home as collateral. You First Mortgage is a licensed brokerage firm that can help you decide if this option is right for your situation. We can help you weigh the benefits of taking out a second mortgage vs. a home equity loan or home equity line of credit (HELOC). Then, we apply and shop rates on your behalf to conveniently provide you with a selection of options from various home equity loan and second mortgage lenders. Our services are available in Santa Rosa, CA and the surrounding areas.
A second home mortgage is a loan that you can take out against your home equity when you already have a mortgage. You can calculate your home equity by subtracting your current loan balance from your home's current market value. A second home mortgage could allow you to access a large portion of that equity for whatever you need. Most of these loans allow you to access up to 80% of your home's value. People take out second mortgages to consolidate debt or pay for education, weddings, home improvements, and more. Are you considering this option? Contact You First Mortgage today in order to speak with an experienced professional and get the guidance you need. Call (707) 919-3103 or fill out our online contact form and we'll get in touch with you as soon as possible. We're looking forward to hearing from you and helping you find a personalized loan solution.
There are various types of second home mortgages. The main differences are in the way you receive the money. With a standard home equity loan, you receive a one-time lump sum. Then, you repay it over time. Usually, you pay monthly fixed payments. Variable-rate loans are also available, but variable rates are more common with home equity lines of credit. A home equity line of credit (HELOC) is a pool of money that you can draw from. You are not actually required to withdraw from that pool at all, but you can whenever you decide you need it. The lender will set a maximum limit and you can borrow as many times as you'd like until you reach that limit. HELOCs are similar to credit cards in that you can keep repaying and borrowing continuously.
Most HELOCs are second home mortgages. However, some are first mortgages. For instance, you can get a HELOC on a home that you own outright. In that case, it would be a first mortgage.
You First Mortgage is a trusted mortgage brokerage that can help you decide if this option is right for you. Call (707) 919-3103 or fill out our online contact form to speak with a qualified professional.