Thousands of families do their financial planning and budget at the end of the year and often realize that they need to change plans for their financial health. Maybe you are you planning to consolidate your debts, need some money for some renovations, looking for some extra cash before Christmas, or just want to reduce the amount of interest you are paying on existing credit cards.
If you own your home there are some great options for you and your family even if you don’t qualify for a bank loan, line of credit, or your mortgage is not up for renewal yet. By establishing a second mortgage you can have access to funds you need right away and if you are consolidating high interest credit cards it will lower the amount of cash you have to put out each month as mortgage rates are lower than most credit cards.
Additionally, a second mortgage is typically a better option than trying to refinance your fist mortgage mid-term which will typically result in very large penalties and in some cases you may not have the option to refinance your first mortgage at all. When your first mortgage does comes up for renewal you can usually just increase it and blend the two together rather than carrying two.
Second mortgages will typically have a shorter term than a first mortgage so they can be set up to renew around the same time as your first mortgage for your convenience. While there are typically fees charged for the setup of a second mortgage, they are incorporated into the mortgage so you would only have to come up with the cost of an appraisal of your property.
If you would like to find out more about second mortgages or get a free no-obligation consultation to review your financial options please contact us anytime at 403-265-5363 or email us at email@example.com
Best wishes to you and your family for a safe and happy holiday season!
Calgary’s Mortgage Broker
Toll Free: 1-888-722-5086