Your Second Mortgage: The Key to Financial Security

Second Mortgage

If you own a home, you can leverage its equity to pay off your loan, eliminate your debts, and borrow thousands of dollars at a significantly reduced rate. How? By taking out a second mortgage.

Homeowners have an extremely lucrative opportunity that isn’t offered to most borrowers. With a simple application, many homeowners qualify for a second mortgage line of credit. Like a credit card, this money can be used whenever you please. You only pay interest when the money is withdrawn. By planning ahead, you can use a second mortgage to pay off your home in half to a third of the time (usually in only ten to fifteen years) and save thousands. Sydney Financial can show you how.

What is a Second Mortgage?

When a lender gives you money and places a lien against your home for that amount, it is called a second mortgage. Because the lender uses your home as collateral for the loan, you will probably be given an amount that is much larger than any credit card’s limit and an interest rate that is much lower than any credit card’s rate (more money + a lower interest rate). Second mortgages generally offer fixed interest rates, so you’ll never have to worry about your rate going up.

Most people take out a second mortgage in the form of a home equity line of credit. You can access this line of credit at any time (during the 10-15 year period) using a check or a special credit card. You only pay interest when you borrow money from the line. Not only do second mortgages offer incredible interest rates, they often make it possible for homeowners to deduct the interest from their taxes!

Will I have to Refinance My First Mortgage to Take Out a Second Mortgage?

No. You can take out a second mortgage without altering your first mortgage in any way. You get extra money, and the terms and rates of your first mortgage stay the same.

How can a Second Mortgage Help Me Payoff My Home Loan?

During the early years of your home loan, you are obligated to pay thousands of dollars in interest. By taking out a second mortgage you can leverage the additional money to pay down your mortgage in ten to fifteen years. By using Sydney Financial’s plan, you can keep the interest on your first loan from accruing so quickly. Not only will you payoff your home loan faster, you’ll save a huge amount of money.

Can a Second Mortgage Also Help with Credit Card Debt?

Absolutely. Many consumers carry credit card debt at an interest rate above 20%. By taking out a second mortgage, you can consolidate your debt at a significantly lower interest rate. You’ll be able to pay off your cards faster and put the extra money towards your home loan. Many second mortgages offer interest rates at ½ the prime credit card rate, or less. Your second mortgage will give you substantial savings immediately and make your monthly bills much more manageable.

Why Should I Get a Second Mortgage from Sydney Financial?

When it comes to taking out a second mortgage, there are a lot of choices. However, only Sydney Financial can help you leverage your new loan to create the most effective mortgage payoff plan. A financial expert will walk you through the steps of applying for a second mortgage. Then, we’ll turn your loan into a mortgage checking account – a unique money-saving account made popular by homeowners in Australia. We’ll show you step-by-step how use your second mortgage to payoff your home loan in less time, eliminate your credit card debt, and save for retirement.

Is it Difficult to Qualify for a Second Mortgage?

No. Many homeowners can easily qualify for a second mortgage. Your application will be considered based on several factors such as your income, your debts, and the value of your home. All you need to do is give some basic information and your lender will do the rest. If you have any questions or concerns, a Sydney Financial expert will be there to help you.

How Much Money Can I Get?

Because your second mortgage uses your home as collateral, the amount of your loan will be determined by the value of your home. Your credit limit will be set by subtracting the balance you owe on your first mortgage by a percentage of the appraised value of your home.

For example: One couple purchased their home for $200,000 and now owes $150,000. Their home was recently appraised at $300,000. If their lender uses a standard 80% guideline (80% of the home’s value is lent), the couple will receive a credit line of $120,000. As you can see, most people receive a credit line with a limit much higher than the average credit card.

How Can I learn More about Second Mortgages?

By following Sydney Financial’s proven plan, a second mortgage can help you achieve your monetary goals. Payoff your mortgage, eliminate your debt, and start saving for retirement now. To learn more, let one of our second mortgage experts contact you. In the meantime, be sure to check out Sydney Financial Group’s informational video.