Many clients hear the words “second mortgage” and immediately put up their guard. What exactly is a second mortgage? It is a charge on your title in second position behind your first mortgage. Did you know Home Equity Lines of Credit are generally in second position behind your mortgage?
Second mortgages carry many of the same features as a Home Equity Line of Credit (HELOC). Tightened mortgage rules on HELOCs have increased the demand for second mortgages as they allow clients to access more of their home’s equity.
What do lenders look at when considering qualifying you for a second mortgage?
- Credit Score