Why do I need to get a 2nd mortgage? It is a good way to pay down high interest debt.
This isn't an arrangement to be entered gently as you will end up paying plenty of charges and can notch up a massive debt that cancels some of the progress you made in paying down your original mortgage. Keep loan below Fannie Mae guidelines One of the most typical reasons to get a second Home Loan is to keep your house loan amount below the Fannie Mae suggestions. After you get a quote for a Home Loan do not feel tempted to take the whole amount if it seems like you overqualified. Then add in your college loans, car payments, Mastercard bills, lunches at work and tickets to take your folks to baseball games 2 times each season. You also need cash for home maintenance and repair there are the home maintenance issues that aren't included when you qualify for a home loan. If you live in a bit of the country that is especially hot, your heating and air con bill could sum up to 2 hundred greenbacks a month.
If a householder isn't careful about getting a 2nd mortgage she can finish up with an exceedingly big debt, no equity and a giant house payment. Basically a second home loan is a fast way to convert some of your equity to cash so that you can pay off some of your other high interest debt.