FIRST OR SECOND MORTGAGE
WHAT IS A MORTGAGE?
A mortgage is a loan that is secure by real estate . This type of loan allows the lender to seize the property if the borrower is not able to pay off the loan in the set amount of time that's decided by both parties. In time, after many payments are made the home owner builds up equity through their property.
WHAT IS THE DIFFERENCE BETWEEN A FIRST AND SECOND MORTGAGE?
The difference between a first and second mortgage is not the property owners actual first or second time mortgaging different properties but rather there position of the mortgages on one specific property. Below are some examples of when you would take out a second mortgage.
FOR EXAMPLE:
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You have a home with a first mortgage and you require additional funds to place a down payment towards a purchase of an an additional property.
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You are looking to do renovations to your property and would prefer to take out a second mortgage on your home
This would be considered a second mortgage as it is registered chronologically to your property behind your existing first mortgage.
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You are looking to consolidate debt into your mortgage balance. There would be two ways to do this, by refinance your first mortgage, register a home equity line of credit or register a second mortgage, by speaking with me I will be able to breakdown which is the best option for you financially.