California Second Mortgages can provide funds based on the equity in your home.

Most homes with a mortgage in California have some sort of Equity, which is simply the difference from the value of the home, and the remaining balance on the home loan. Often, if the house is newer, (for example, a new condo south of Hollywood), or has been remodeled after purchase, the chances of a higher equity are in the homeowner’s favor. Home Equity can be used to finance purchases, with a California Second Mortgage.

Basically, a bank appraises the house, finding out how much the house is worth, re-checks credit in case situations have changed for the homeowner, and makes an offer to the homeowner. If the homeowner accepts, the disbursement begins. The funds can be used for practically anything, from repairing the home, or remodeling, to paying off high interest credit cards, to even paying off the difference of the first mortgage (*more on that in a second) relieving a little stress for the homeowner and possibly increasing the value of the property.

Realizing that financial distress has to be on the top 100 of painful experiences a California Second mortgage might actually be beneficial to a homeowner’s health. Studies show diseases affiliated with stress are agitated, if not provoked, by financial stress. When money is tight, especially today with rising fuel costs, food costs and general living, there are certain safeguards available to homeowners. This is what a California Second Mortgage was designed for.

When it comes time to pay for the loan, it is important to remember that the first mortgage needs to be paid off first. Which can lead to accruing interest that can later cripple the homeowner if left unprepared. Essentially, once the first mortgage is paid, with the terms set in the contract, the second lender expects a beginning of payment for the equity loan. Granted, the principal is much lower, however, the interest rate may be higher. In considering a California Second Mortgage, be sure to calculate the risks, including home foreclosure if in default. For more information on a California Second Mortgage, visit Eagle Nationwide Online 24/7 at www.eaglenationwideonline.com. Our dedicated loan officers are always available to assist you with all of your financing questions and needs.