Almost every American or European buy a home owing to home mortgage loans. Home mortgage loan is a long-term loan and usually one has to pay it off during twenty years. What should you do, if you need a loan for buying something else? Our asset management review explains the procedure of getting second mortgage.

Second mortgage is a loan subordinate to the first loan against the same property. Mention that second mortgage rate is higher than the first mortgage rates, because second mortgages are riskier for second mortgage lenders (if a borrower becomes unable to pay off his loan, the first mortgage gets paid off before the second mortgage).

As second mortgages are risky for second mortgage lenders, they try to insure yourself by higher second mortgage rate and thorough checking of some information about you and your ability to pay off the second mortgage rate. In an asset management company you will be asked about:

  • your current income,
  • your first credit state,
  • equity in the first mortgage,
  • low debt-to-income ratio,
  • solid employment history.
But still second mortgage lenders offer you good conditions. The terms of second mortgage last up to 30 years, while repayment may be required in as little as one year depending on the loan structure. So as you can see second mortgage lenders give you a unique opportunity to take a loan even if you have already have a home mortgage. Apply to second mortgage lenders or an asset management company and get the second mortgage benefits.