3 Quick Tips on Applying for a Second Mortgage

Tips for applying for a second mortgageSo you urgently need some money and are looking to apply for a second mortgage. That’s a wonderful idea, given the numerous benefits that come with such a loan. Not only do you stand to avoid paying PMI, for instance, but also qualify for a significantly larger loan amount.

Having said that, there are a few tips to keep in mind as you apply for a second mortgage. Here are three of them.

1. Get a few quotes first.

Some homeowners don’t know this, but you don’t necessarily need to take a second mortgage from your current lender. It’s best to shop around and find what another mortgage company in St. George has to offer. Ask your real estate agent for recommendations. Get quotes from online lenders too.

2. Get the timing right.

There are a few factors that should determine when it’s best to apply for a second loan. The equity in your home will determine how much money you can borrow, so it’s best to apply when home prices in your area are highest.

Also, refrain from applying for a loan when interest rates are high. Wait till the interest rates decline, then try to lock in a fixed rate.

3. Prepared for the fees involved.

Applying for a second loan can involve a lot of paperwork and charges, so get ready for that. Typically, the lender will require that your home is appraised afresh to determine its value and how much equity you have in it, and that attracts appraisal fees.

Applying for a second mortgage can be a smart way to raise some money when you are in need. As you go through the application process, it’s a good idea to know what is involved, so you make the best decisions.

Posted on by Nihonmagazine in Money Talks

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