A second mortgage is a simple loan taken after the first mortgage. There can be several reasons to take out a second mortgage such as consolidating debt, home improvements and many other reasons. The second mortgage is obtained using the same assets as the first mortgage, however at just a little higher rate. The amount of the loan is taken from the equity from the house. The term for a second mortgage can last from as little as one year to 20 years.
There are two kinds of second mortgages: fixed rates & home equity of credit. The fixed rate will be provided to those who want the lowest rate and keep that until the end of the mortgage term. On the other hand, home equity of credit is an adjustable mortgage rate. There will be a fixed rate for a specific amount of time and the rest of the period, the rates will adjust depending on the current trend in the market.
Working with Majestic Mortgage makes the mortgage process easier. Approving a second mortgage is a very simple process. We at Majestic Mortgage get mortgage approved for up to 95% compared to the traditional lender value of 80%. There are flexible payment options allowing you to pay the amount beforehand or in equalized payments. The most common difficulty with getting a secondary mortgage is the is bad credit, therefore Majestic Mortgage gets secondary mortgages approved through equity not credit and there is no income or credit check required.