WHAT IS A SECOND MORTGAGE LOAN?
A second mortgage loan is also called a home equity loan, because it allows you to borrow money against the equity in your home. Usually, the maximum amount available is determined as follows:
(Appraised value of your house x 80%) - existing mortgage balance
This closed-end loan calls for equal payments to pay off the loan within a certain term (60, 84, 120, or 180 months), at a fixed rate of interest.
WHO SHOULD CONSIDER A SECOND MORTGAGE LOAN?
A second mortgage is good for members with major expenses. You might consider a second mortgage instead of a home equity line of credit if you need a set amount for a specific purpose, such as an addition to your home.
You must be a property owner to qualify for this loan.
ADVANTAGES OF A SECOND MORTGAGE LOAN
- Lower interest rate
- Interest may be tax deductible
- Ability to borrow larger sums of money
HOW TO APPLY FOR A SECOND MORTGAGE LOAN
- Request an application for a Home Equity Loan or click here.
- Return the completed application (make sure all owners have signed).
- Enclose a letter or statement from your mortgage company showing the balance of your loan.
- Include the name of your insurance company and agent. (A loss payable clause will need to be supplied to us at closing).
- Send a copy of your deed or mortgage showing the legal description of the property.
- Arrange to have an appraisal completed on a uniform residential appraisal form. (After your credit has been checked, we will approve your loan subject to an appraisal.)
Click here for current second mortgage rates.