If you are considering taking out a second mortgage then it would be fair to say that you may be close to your retirement years because it takes up to 30 to 35 years to pay off your initial mortgage. You are to be congratulated on paying off one of the biggest purchases that you have ever made and the good news is that there are options now for you to address your bucket list and to really make your dreams come true. The first thing that you need to do is to establish whether or not that you qualify for a second mortgage and for that you need to make sure that you are in regular employment and you have equity in your current property.
The best thing to do is to talk to second mortgage lenders to get an idea of how much money that you can borrow on the strength of your current property so that you can make plans for your future now. There are many advantages when it comes to taking out a second mortgage and the following are just some of those.
- You can borrow a lot – It really does depend on the equity that is on your current property and even though you purchased your property 30 to 35 years ago at a knockdown price, it may have increased in value dramatically over these years and you could be looking at a property that is worth in excess of $1 million. If the same equity is on the property, then this is the amount of money that you can borrow.
- Poor credit score/not an issue – It doesn’t matter that you have a poor credit score due to some mistakes that you made in your past because now you have equity and any money that you borrow will be secured on the property that you already own.
- You can spread out the payments – If you are not in a big hairy to pay the money back quickly then you can spread the payments out over a considerable amount of time or you could use the money to pay off all of your current debt and this would address the really high interest charges that you’re paying on your credit cards.
Another thing to enjoy is a much lower interest rate than the mortgage rate that you had to pay on your first property and you can repay the money back as quickly or as slowly as you would like.