WE WILL FIND YOU THE LOWEST RATE
A second mortgage is a secured loan, taken out on an existing mortgaged property. This additional loan is in fact riskier than the first mortgage, since lenders in this case are in second position on the title of your property. In case the homeowner has defaulted on the payments and the property has been possessed, the first to be paid out would be the lender in the foremost position (first mortgage). Hence, the provider of a second mortgage would always run the risk of being compromised in the sense of receiving full re-payment. Due to this reason, second mortgages are also often termed as subordinate in nature. To make up for this risky situation, providers of second mortgages usually charge a higher rate than that of a principal mortgage.
Individuals that have an existing mortgage, with good credit and above 20% equity in their homes, can consider a home equity line of credit as the most affordable second mortgage option (although the rate may be higher than a second mortgage). However, in the case of bad credit or little equity in the property, the homeowner would require borrowing money through a private lender or a trusted company. In any event, OCH has the experience and network of lenders that may be able to assist you in any such case. Call us at 647-478-9311.