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Household Tips and Tricks – 3 Tips to Consider when Shopping for a Second Mortgage – What’s My Elk Grove Home Worth?

By
Real Estate Agent with Real Estate Specialist -Rigley Realty Group 01391317 / 01472902

Mike and Jennifer Rigley (buyers) 916.378.4671 / (sellers) 916-660-5823 Info@RigleyRG.com
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Whether you’re considering a second mortgage to consolidate your debt or complete some home renovations, there can be a lot that goes into making this financial decision. Because a second mortgage is a loan that goes against the equity you currently have on your property, this can be a risk to the ownership of your home. If this is an option you’re seriously considering, here are some basics to know before deciding to on this route. 

 

 

Be Prepared For Higher Rates

 

You may be used to the steadiness and consistency of the fixed rate on your first mortgage, but the rates associated with a second mortgage will likely be higher. Because, in the event of default, the first loan on a mortgage will be paid first, lenders for a second mortgage will charge higher rates and fees to validate the elevated risk they’re taking on. While there are lenders that can offer competitive rates, you’ll need to do your research to find one that works for you.

 

Private Lenders May Offer More Solutions

 

If you cannot go through your initial mortgage lender in order to secure a second mortgage, you may want to consider a private lending professional who may be able to provide a better solution for you. Because private lenders are not working within the constraints of a larger institution, their guidelines for documentation and qualification may be a little less stringent. While they may have their own set of guidelines for providing a second mortgage, it can be a better way to go.

 

Is A Second Mortgage Necessary?

 

In order to obtain a second mortgage, it’s important to be aware that you should have enough equity in your home to make the loan worthwhile. Because you will only be able to refinance 80% of your home’s value, it may not be worth the higher rates you’ll be paying if you’ve only been paying into your home for a short time. Before deciding if a second mortgage is right for you, make sure you consult with a professional to determine the best choice for you.

 

There are a number of reasons that homebuyers consider a second mortgage, from making large-scale home renovations to getting rid of overriding debt, but it’s important to consider if this option will work for you before moving forward. If you’re thinking about a second mortgage, you may want to contact one of our mortgage professionals for more information.

 

 

Small tips can bring HUGE savings over time, and even add value to your home. If you or someone you know are thinking of selling your home in Elk Grove, California (or in surrounding areas) - Please give us a call at 916-660-5823 or look us up at www.RigleyRealtyGroup.com

Looking for a top realtor in Elk Grove, CA? Call the Rigley Realty Group today at 916-378-4671

What’s my Elk Grove Home Worth? Call us today at 916-396-7487 for a free no obligation consultation or log on to www.TodaysHomeValues.info to find out. Call us today – you’ll be glad you did.

 

To stay up to date with more Elk Grove Community News and Events, log on to www.RigleyRealtyGroup.com

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Thanks for joining us,

Mike & Jennifer Rigley

RigleyRealty Group

916-339-7061

Cal BRE # 01391317 / 01472902 

 

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Whether you are buying or selling a home, Mike and Jennifer Rigley of the Rigley Realty Group are your go to local Realtors. Their strong focus on assisting homeowners in need and offering a free straightforward no nonsense consultation, is why they have been named one of "Americas Best Real Estate Agents for 2013". 

  

  This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Mike Rigley's personal views.

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