QandAs: Loans

Why would I need a Second Mortgage?

Answer:
Consumers commonly take out second mortgages

on their homes to finance major expenses such as home improvement, college tuition, travel, and health care. Second mortgages are also used to pay off and consolidate other debts such as credit cards, personal loans, and auto loans.

Some borrowers are simply looking for an ongoing source of cash quick cash to cover unexpected needs. Most homeowners realize significant savings with a second mortgage versus other forms of available credit. Mortgages offer lower interest rates and lower payments relative to the amount borrowed. Plus any interest you pay is tax deductible.


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