Second Mortgage Calculator: How much can I borrow? In 2008 the financial market faced a crisis, and the property market was also under the crash. The thing is, the housing market did survive and many people actually came out of 2008 wealthier because of property.
Many of these people had multiple mortgages, and they turned out to be great assets.
Fast forward to today and it is very common for homeowners to want a second mortgage, and unlike what some people may say, this can be a good thing.
Although there are a few common problems that mortgage buyers run into, you can bypass these problems. It’s all a matter of knowing what you are doing.
If you can find a great rate for your second mortgage using a 2nd mortgage calculator then you can set yourself up for success.
In just a moment we are going to cover how you can get a second home equity loan including the dos and don’ts that you need to know. Read on to discover more.
What Should I Know About Getting a Second Mortgage?
Many people see getting multiple mortgages as a great option. But before you get yourself into a new home loan, it’s important to know what’s entailed.
In short, a second mortgage is when you take out a second loan while you still have your original mortgage loan. Since you already have one mortgage which may need to be paid off, interest rates tend to be higher on your second loan.
In the Canadian housing market, getting a second mortgage can be based simply on the equity in your home. The criteria are not as extensive as obtaining a mortgage through your bank or local credit union.
This is why it’s important to be aware of what you need.
You may be surprised to learn that even with a bad credit rating, current or past bankruptcy or a low income, you may be able to get a second mortgage loan.
There is a very popular way to get a second home loan that more people are using.
The popular way is by getting your loan through equity. This brings us to our next point.
How Do I Get a Loan?
A common theme among people who are on the search for an additional mortgage is they think they can’t get an extra home loan without a good credit score. However, this isn’t true.
People also get hung up on the loan to value and appraised value, when really this isn’t necessarily the most important thing.
This is why equity is increasing in popularity.
Getting an additional home loan with equity is a fairly straightforward process. In fact, you don’t even need to have cash in hand to get your second property.
Instead, you can borrow money for a loan against your equity for your first house through a refinance. So long as your application is successful, this will allow you to get your loan.
Depending on the amount you already have in your equity, you may be able to get a bigger loan.
For example, if you have built up a lot of equity in your first mortgage, then you may be able to loan a large amount for the second loan.
With this in mind, it is important to consider just how much you may be able to get from your second home loan.
On the other hand, if you haven’t built up a lot of equity already, then it may surprise you when you discover you may not be able to get much of a loan.
Overall, it’s important to weigh up your options when going into a second equity loan. We would always encourage you to check out how big your loan could be against your equity by looking at your options.
The Benefits of a Second Home Equity Loan
Now that we’ve covered some of the ins and outs of getting a second home equity loan. As well as things you should consider and what your options may be, it’s time to talk about the benefits.
One thing is certain, there are a lot of benefits to getting a second mortgage. So if you are on the fence or if you have any doubts, read about the benefits below.
One great benefit is that you get to borrow a large amount of money. Some people do this simply because they want to purchase a second home.
Others want a second home to rent out so they can start adding to their property ladder portfolio while using it as an investment.
Another benefit is that you can be approved without needing a credit score. There aren’t many other loans that equal the size of a mortgage that you can easily get without needing a credit score.
Aside from not needing a credit score, you also don’t need to pay your entire loan off immediately. A mortgage can be spread over a long period of time, where unsecured loans require full payment sooner.
The great thing is, these aren’t the only benefits to getting a home equity loan, there are many more.
Get Your Second Mortgage Now
Having spent some time reading about second mortgages, including what you can expect and how you can get one, you now have a better picture of what’s on offer for you.
Getting a second home loan can seem like a stressful or anxious experience. Today there are several unique second mortgage options available that are easier than you may think.
Once you know what your options are, then it’s just a matter of choosing the best one for you.
If you would like to learn more about getting a second mortgage, a deeper look at the numbers or you just want to run something by us, simply give us a call or apply today and be approved in as little as 24-hours.