The Costs of Adding a Second Mortgage
Second mortgages come with higher rates than first mortgages but much lower than the rates you’ll find with unsecured lines of credit or high interest credit cards.
Additional costs associated with a second mortgage
- potential property appraisal costs
- legal costs
There is No Cost when working with Huber Mortgage to put a 2nd mortgage in place.
I am compensated fully by the lender.
The Benefits of using a 2nd mortgage
I’m writing this article because I have worked on a few of these 2nd mortgages recently and it has helped clients accomplish their goals while keeping costs under control.
- Putting a second mortgage in place does not affect your current mortgage or payment (lots of people still have fixed mortgage contracts in place that you should NOT change! Keep those low rates for as long as you can because I suspect the days of 2% mortgage rates are over.
- Use the 2nd mortgage funds to accomplish your goals
Real Life 2nd Mortgage Situations
Example 1 – clients used a $145,000 2nd mortgage to upgrade their home allowing their elderly parents to move in; saving them long-term care costs and keeping their parents close to family and their grandchildren.
Example 2 – client used a $50,000 2nd mortgage to purchase materials for his garage/shop upgrade, allowing this client to save thousands on commercial rental costs – his work is now done from his at-home garage.
Example 3 – client used a $42,000 2nd mortgage to carry out basement renovations, converting his basement into a rental income suite; providing him over $1400/month in rental income.
Conclusions and Further Thoughts
There are always ways to accomplish your goals. Let’s strategize ways to help you get you where you want to go!
Contact Huber Mortgage to discuss your plans – Click HERE
PS – One of my hobbies is blogging about mortgages, debt and government policy. During the day I’m a MORTGAGE BROKER in Kelowna, BC!
Check out the Huber Mortgage Home Buyers Guide HERE