Have you been thinking about obtaining a second Milton mortgage but are wondering if the added costs are really worth the benefits? Well to help you get a better understanding of what exactly a second mortgage is and the benefits associated with one, our team at Loewen Group Mortgages is here to clear up some confusion.
What is a Second Mortgage?
This is where you obtain an additional mortgage on your house, along with your current mortgage to access your home equity. The equity in your home is the difference between your loan balance and the overall value of the house. This means that the more you pay towards your mortgage, the more home equity you will have. You can gain access to your equity without having to sell your home by getting a Milton second mortgage.
Benefits of a Second Mortgage
There are multiple benefits associated with a second mortgage. Most people obtain one to gain access to a large sum of money, which is their equity. You can use this money any way you would like, such as to pay off debt, buy more real estate, make renovations to your home, fund education, or even to go on a family trip.
Another benefit of a second mortgage is that you can consolidate all your debt into one payment. Mortgage rates have been record-breaking low over the past few years, for example, you can get a five-year, fixed rate mortgage with an interest rate as low as 3.34%. Whereas current credit card debt in Canada is as high as 12%.
By obtaining a second mortgage, you can pay off your outstanding credit card debt, which is drastically higher than the interest you will be paying on your mortgage. This will help you have more affordable monthly payments and lower interest rates. In addition, by consolidating your debt into one payment, you will only have to worry about making this one payment per month instead of having to organise multiple payments with different companies.
For more information on the benefits of second mortgages, please contact your local Milton mortgage broker at 289-270-1586. Our team at Loewen Group Mortgages would love to work with you and help guide you throughout the second mortgage process.