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second mortgageThere are several reasons to look for a second mortgage. There is the wish to consolidate other debts with high interest to create lower payments. Some people want to create a home equity line of credit (HELOC.) There are still others who are trying to avoid paying private mortgage insurance (PMI) on their first mortgage. At AKAL mortgages, we are here to help you find the financial solution that fits your situation. Let’s take a closer look at this unique loan.

What is a Second Mortgage?

A second mortgage is also called piggyback mortgage, it takes a second lien on the house or property. It is a second loan on a home already mortgaged. This is when you borrow against the value of your home. It is a loan you need to apply for. Second mortgages are helpful when you use them to pay off debt.

What a second mortgage is not, is a remortgage, secured loan, or a second charge mortgage.

Many people look at this type of loan because of the lower interest, more time to repay debts, and the interest payments are tax-deductible.

What does it Do?

When many people look for a second mortgage, it is often to pay off financial obligations. You borrow equity to pay those debts. You can use a second mortgage to pay off credit card debt. If your debt is spread out over several accounts, the second mortgage can bring it all together into one payment. Besides credit card debt, you can also use this specific loan to pay off other obligations such as renovations.  Second mortgages usually close in a few weeks, but can take up to a month.

Things to Know

There are a few things to keep in mind when looking at a second mortgage. Remember it’s a loan, the funds need to be paid back. The second mortgage will be tied to your home. If you don’t pay the money back, you will lose your home. It is also good to know, if you use the loan to pay off debt, there is a chance it could hurt your credit score. You could also end up paying more in the end, as second mortgages can go on for 25 years.

As you can see, a second mortgage may not be for everyone but it could be the right choice for you. At AKAL Mortgages, our specialists are here to help you. Contact us today so we can answer your questions and discuss your own unique financial needs.

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  • Jas Bath

    The experience with AKAL Mortgages Inc. is great!!! I recently got approved for a business loan thought them and the agent that helped me with the process was outstanding. I am impressed with the convenience and very helpful service. I hear their agents on the radio all the time making consumer aware of the options available about mortgages and loans. And, they way they do, touch my heart. So honest and ethical.

  • Oli Rubion

    My wife and I visited AKAL mortgages Inc. due to their reputation in the market. We were attended in a timely fashion to discuss our mortgage and line of credit needs. We are so glad that we were provided with great options and solutions to choose from. We are very happy and satisfied from the services provided by AKAL mortgages Inc. We definitely recommend their services to our family and friends.

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