SECOND MORTGAGE SERVICES

second mortgage services

SECOND MORTGAGE SERVICES

There are plenty of reasons you might need to access a large amount of money. Maybe you’re thinking about going back to school or you need to consolidate a few high credit card balances or maybe you want to do some repairs on your home. A second mortgage is a lien taken out against a property that already has a loan on it. A lien is a right to possess and seize property under specific circumstances. It is a loan that lets you borrow against the equity in your home. Equity is the value of your home above the remaining balance you owe on your first mortgage. So, for example, if your home is valued at $300,000 and still you owe $200,000 on your first mortgage, you have $100,000 worth of equity in the house.

You can use funds from a second mortgage for a variety of purposes. Some of the most common uses of second mortgages include consolidating other debts (especially high-interest credit cards) and financing home improvements or repairs.

Like the first mortgages, second mortgages must be repaid over a specified term at a fixed or variable interest rate, depending on the loan agreement signed with the lender. The loan must be paid off before the borrower can take another mortgage against the home equity.

How second mortgage loans are important?

Second mortgage loans are very popular because they help borrowers meet short-term fund requirements. They have a lower rate of interest and can be obtained easily if taken from the same bank, to which you have mortgaged your house. They are used as top-up loans by borrowers for home improvements, pay-off immediate debts, or cover emergency personal expenses. Whether it is a home equity loan or a home equity line of credit our second mortgage services loan plan handles the process with full dedication.

How second mortgage services are offered by us?

Second mortgage loans are very popular because they help borrowers meet short-term fund requirements. They have a lower rate of interest and can be obtained easily if taken from the same bank, to which you have mortgaged your house. They are used as top-up loans by borrowers for home improvements, pay-off immediate debts, or cover emergency personal expenses. Whether it is a home equity loan or a home equity line of credit our second mortgage services loan plan handles the process with full dedication.

How second mortgage services are offered by us?

Prafton Finance has several years of experience in offering mortgage lenders with second mortgage loan servicing. We are experts in arranging and processing back-office requirements needed by lenders to extend subordinate mortgages to borrowers when their original mortgage is active. Our well-defined approach to loan document verification and computation of the combined loan value and the equity value of the property will assist you to come to the right conclusion.

What types of second mortgage service do we offer?

There are two major types of second mortgage services you can choose from: a home equity loan or a home equity line of credit.

  1. Home equity loan: A home equity loan is like a cash-out refinance in that it allows you to take a lump-sum payment from your equity. When you take out a home equity loan, your second mortgage provides gives you a percentage of your equity in cash.
    In exchange, the lender gets a second lien on your property. You pay the loan back in monthly installments with interest, just like your original mortgage.
  2. Home equity line of credit: Prafton Finance doesn’t give you money in a single lump sum. Instead, they work more like a credit card. Your lender approves you for a line of credit based on the amount of equity you have in your home. Then, you can borrow against the credit the lender extends you.
    You may receive special checks or a credit card to make purchases.

What are the terms and backup period for a second mortgage?

  1. Lenders assess the higher risk to second mortgages than to first mortgages take precedence in receiving proceeds from the sale of a home in the event of foreclosure. Because of this risk difference, second mortgages generally have somewhat higher interest rates than first mortgages, but both are usually lower than unsecured loans like personal loans or credit cards. Terms for both first and second mortgages go up to 30 years.

ADVANTAGES OF SECOND MORTGAGE SERVICES THROUGH PRAFTON FINANCE:

  1. A second mortgage may help you borrow a significant amount of money- more than you could typically get without using your home as collateral. How much equity you can tap depends on your debt level, income, credit history, and other factors.
  2. Interest rates on second mortgages are generally lower than the rates on credit cards or personal loans. Because your home backs the loan, you reduce the risk of the lender. This lender risk reduction can translate into savings for you as a borrower.
  3. If you use a second mortgage to buy, build, or substantially improve the home you use to secure the loan, the interest may be tax-deductible.

ADVANTAGES OF SECOND MORTGAGE SERVICES THROUGH PRAFTON FINANCE:

  • Make sure you have equity in the home: Lenders won’t extend credit against a property that has little owner’s equity. Generally, the homeowner must have at least 20 percent equity in tier home, meaning their remaining mortgage makes up no more than 80 percent of the home’s total value.
  • Have a plan: Before you approach a lender, know how much you need to borrow and whether you need a one-time loan or the option borrow multiple times. This will help you decide whether a straight home equity loan will serve you better.
  • Check your credit scores and reports before applying for a loan: It’s smart to check all three of your credit reports and scores before you apply for any type of financing. Dispute any credit-reporting mistakes you discover.
  • Gather all your paperwork: Lenders will want to pay stubs, tax returns, bank statements, and more. You can streamline the process by compiling all documents that show your income and assets before you apply for financing.
  • Shop around: A local bank or credit union is a good place to start. Get quotes from several lenders, including online lenders, and compare them. Never go with the first lender that’s willing to give you a loan.