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5 Ways You Might Benefit from a Second Mortgage

calendarAugust 3, 2018

peopleThe Mortgage Advisors

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Are you looking for a way to pay down debt, tackle a renovation, or pay for your kids’ education without having to take out a high-interest loan? A second mortgage might be your answer. By using the asset you already own, you can access money to help with a whole range of financial needs. To learn more about this opportunity, here we’ll show you some of the ways you might benefit from a second mortgage.

Accomplish Many Financial Goals

A second mortgage can help you to tap into your home’s equity so that you can accomplish some of your financial goals sooner rather than later. And because it uses your home as leverage, you don’t have to go through any lengthy approval processes like you would with another loan instrument. Once you have the loan in place, you can immediately put it to good use — it’s really that quick and simple. So whether you’ve wanted to go back to school, grow your business, buy a new vehicle, purchase an income property, or invest in a once in a lifetime opportunity, a second mortgage can inadvertently help you pay for these.

Consolidate High-Interest Debt

If you’re struggling to pay off your current debts or would like to reduce your interest rates, a second mortgage can help you to consolidate debt into one low payment. When you take out a second mortgage, you can use this money to pay off your high-interest debt loans like your credit card and line of credit debt. That way you’ll only have to deal with one lower monthly payment which can help you to pay off your debts faster.

Increase the Value of Your Home

The equity you obtain with a second mortgage can give you the money you need to engage in a new renovation project. Upgrading and improving the current condition of your home can significantly increase the value of it and add to your net wealth.

Avoid Costly Penalties

If you are mid-term in your current mortgage, it may involve a substantial penalty to break it. A second mortgage can help you access the equity and cash you need now as a short-term solution until your first mortgage is up for renewal. Then we can look at combining them at maturity into one new first mortgage.

Obtain Maximum Flexibility

Many loans come with specific stipulations on how you can use the funds, but with a second mortgage, you can use it however you wish.  It gives you the maximum flexibility to put that money where you need it the most. Whether that’s consolidating your debts, remodelling your home, or paying for your children’s education, you have the freedom to put your money where you choose.

If you’re ready to explore all the ways you might benefit from a second mortgage, contact us at The Mortgage Advisors. We’ll help you get the money you need, save you money in the long run, and increase your overall wealth.

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