How To Get A Second Mortgage Loan
If you want some cash to do a few home improvements, buy a new car or pay for a child’s college education, you may need to know how to get a second mortgage loan. You have many different options when it comes to the lending source for your second mortgage loan. By shopping around for the best loan package, you can save a lot of money.
- Contact the lending institution that holds your first mortgage. Your primary home lender has already given you money to purchase your home, so when you want to get a second mortgage loan you should see what kind of loan package they have to offer. If your credit is in good standing, your primary lender is likely to approve you. They already have your information, and if you use them for a second mortgage loan your paperwork can often be processed faster than if you used another institution.
- Check a variety of other lending sources. Even if your primary lender is interested in helping you with a second mortgage loan, you should check with other lenders to compare the different loan packages. If one of the sources you contact has a better interest rate, you may even be able to get your primary lender to match it.
- Decide which loan is best for you. If you want to have an open line of credit using your home as collateral, a home equity line of credit may be the best alternative. If you only want a loan for a fixed period of time, a regular second mortgage should be sufficient. Consider both types of loans carefully. You do not want to have to go through the second mortgage loan process again should you decide you need more money at a later date.
- Consult with a tax professional. Certain second mortgages may not be fully tax deductible. An accountant or other tax expert will give you insight as to the tax ramifications of the second mortgage loan you have chosen.