A second mortgage, also known as a home equity loan, is a mortgage that is secured against your property. Second mortgages in KC are primarily used when you need a lot of cash to cover an expense like home repairs. Just like when you applied for your first mortgage in KC, you must be able to finance it. You may not be able to get a second mortgage in KC if you have:
If you are able to obtain a second mortgage in KC, you can use the extra money for:
Not only are some home improvements tax deductible, but they can also bring up the value of your home. The cost can vary based on the condition of the home and what is being improved. Usually whatever you improve, it will be worth it in the long run.
If you are looking to buy a new house, a second mortgage in KC can be used as a piggyback loan. Piggybacking two mortgages in KC can help you avoid PMI and help finance the down payment.
While the pros of a second mortgage are great, it has its disadvantages too. Namely:
If you don’t pay back the loan, you can lose your home. In addition, since this second loan is second in priority to your main loan, fees and rates will be higher. The closing costs of a second mortgage are usually 3-6 percent of the loan amount. Compare that to about 2-5 percent for a main loan.
Also, only use the funds you get from a second mortgage on big payments like home improvements. Don’t use it on luxury items like a vacation. You don’t want to risk losing your home because you used the money on frivolities.
Putting a home into a trust may seem like an option reserved for older homeowners who have paid off their mortgage and have accumulated an estate, including assets such as a home, motor vehicles, various investments, boats, rental properties, furniture and even a vacation home. However, having a home that’s owned outright is not necessary […]
The start of a new year is often seen as the time to make major changes in life. While many people resolve to start hitting the gym, losing weight, reading more, or making a career change, others may decide to buy a new home in the coming months. That’s a great goal, one that can […]
Buying a home is one of the most exciting events in a person’s life. A new home can mean a new direction, a major step forward, the beginning of a family or just a fun opportunity to live in a new state, city or neighborhood. It’s also a complex task that involves several important steps. […]
