Getting A Second Mortgage
Kachi Realty
Getting A Second Mortgage
Getting A Second Mortgage
Second mortgages are not as common as they once were, and getting one is not as easy as it used to be, but even with the recent financial pressures that many of us are facing in this economy, there are still a number of options that can allow you to get one. Whether it’s the ability to use the existing equity of your home to help you get through a tough time, or to finance home improvements, a second mortgage in some cases can be the best financial option.
What Is A Second Mortgage?
While there are still a number of choices for getting a second mortgage, it is usually possible only when you have existing equity in your home. A second mortgage differs from refinancing your home in a few ways. The most important thing to remember is the 80% rule, which affects the amount that you can borrow on a second mortgage, and will likely be less than if you refinanced. For example, if you own a $200,000 home and still owe $100,000, the 80% rule means that you can borrow up to 80% of the value of your home, minus the outstanding amount. So in this case, 80% of $200,000 is $160,000. Subtract from this what you still owe—$100, 000. This equals $60,000, which would be the maximum amount you could borrow. The second mortgage on paper becomes a lien against your home.
Is A Second Mortgage Right For You?
In general, and especially in this economy, a second mortgage can often be obtained at a lower interest rate than refinancing, and there are no closing costs associated with this type of borrowing. There are some restrictions, however, on what kind of expenses can be covered with a second mortgage. Lenders usually provide second mortgages for costs associated with home improvements and renovations, as these expenses will increase the value of your home. They also will consider a second mortgage for emergency medical expenses, to fund your child’s education, or for debt consolidation if it is financially reasonable.
In general, a second mortgage may be the right choice for your particular financial situation and can be a smart way to fund much needed home improvements. Remember, it is always important to go to a few lenders to get the best offer possible, and to be sure you are only borrowing from a reputable and established institution.
Useful Information from Kachi Realty LLC
Cut your energy costs with easy home tips. Learn how smart lighting, efficient appliances, and simple thermostat tricks can help you save energy and money year-round.
WAYS TO GO GREEN IN THE KITCHEN Start a garden. Whether you opt for a full-out vegetable garden or a small window of fresh herbs, the taste of freshness will be unmistakable! Shop locally! Visit local farmers markets or choose locally produced produce whenever possible. Bring your own bags when you visit the grocery store. Switch to energy-efficient light bulbs. Save time and energy by cooking a double portion and setting half aside in the freezer for a quick meal at a later date. Get energized and leave the appliances alone. Whenever possible, mix and beat ingredients by hand, cook multiple items at the same time, and avoid washing dishes unnecessarily. Use energy-efficient appliances such as the slow cooker or toaster oven, which can use up to 30% less energy. Be aware of energy wasters such as excessive pre-heating or simmering. Ditch the wraps (such as saran wrap or foil) and make the switch to reusable containers for lunches and leftovers. Put a lid on it! Did you know that cooking with lids could save up to three times the energy? Keep all that steam inside the pot for a more energy-efficient (and faster!) meal. Go fresh—say goodbye to excessively packaged foods, which are often produced using processes that are harmful to the environment. Cooking meals from scratch using fresh ingredients is not only healthier, it’s often less expensive and better for the environment. Decide what you are looking for before you open the fridge, and never keep the door open longer than absolutely necessary.
Water Features For Your Yard A water feature can make a major change in your yard, and there are plenty of different ways to go about adding one. From a simple and small fountain to a koi pond or waterfall, you can use water to create a peaceful sense of a real escape from life in your yard. Small Water Features For small yards or for those looking to add something simple, a basic fountain is easy to add. They come in a variety of types, shapes, and sizes and can fit into any landscaping. Your fountain can be a centerpiece for the yard or can be placed near the patio. You can even get a small tabletop fountain for the patio table. Most fountains are easy enough to install by yourself. They use a pump system that circulates the water and keeps the fountain running. Follow all of the instructions for set-up, use, and care that come with the fountain and you can enjoy the sound of trickling water for many years to come. Adding A Pond A pond is a really eye-catching and special addition to any yard. You will need some space for it, but even smaller yards can manage one. Koi ponds are a very popular choice, as the fish are lovely and create an ambience in the yard. They fit in well with any sort of Japanese or other Asian landscape design, but really extend into other styles as well. Make sure your pond has a system for keeping the water circulating and clean; standing water can become a breeding ground for mosquitoes, and it can get quite dirty over time. It’s best to have a professional install the water system for your pond. Waterfalls You may not be able to have Niagara Falls in your yard to enjoy, but you can get a waterfall added as a feature of your yard. These can be falls that descend over a rock wall, a small stream that runs over consecutive drops in a sloped yard, or something in a corner where water falls down into a small pond. A waterfall adds the sound of moving water to the air all the time. Be sure you have proper drainage for the water system. Water features are a beautiful addition to any yard, and your imagination is really the only limit. Many professionals can help you to design the water feature that is right for your yard and your needs.