If you're in need of additional funds and you own a home, you may have the opportunity to borrow against your home through a second mortgage.
A second mortgage is another name for a home equity loan. The amount that can be borrowed on a second mortgage is typically based on the difference between your home's current value and your original mortgage principal. This type of loan utilizes your home's equity to provide you funds for home repairs, school tuition, debt consolidation and other financial needs. For example, if you have a child who's about to go away to college and you need money for the tuition, a second mortgage can you help you afford your child's education. If you want to make home repairs or renovate your home, a second mortgage can supply you the funds you need to get the job done. It's a good way to tap the asset value of your home to meet your investment and budget needs, and helps you avoid incurring high interest unsecured debt like credit cards.
Second Mortgage Benefits
There are some innate benefits to a second mortgage. First of all, since a second mortgage is based on your home's equity, as a home owner, you have the funds readily available. A second mortgage is a secured loan and is generally easier to obtain than other types of loans.
Also, the interest paid on a second mortgage is normally tax deductible. Not all loan interest can be deducted from your annual taxes. With a second mortgage you can easily deduct the interest you pay on your second mortgage from your taxes.
Second Mortgage Disadvantages
There are some disadvantages associated with a second mortgage that you need to be aware of. For starters, since the second mortgage is being based on your home's equity, you are putting your home on the line. If you default on payments, the bank can take away your home. Also, interest rates can be higher than a first mortgage, especially if you have a low credit score. A low credit score always affects the interest rate of your loan and the amount that you can borrow.
How to Get a Second Mortgage
If you've determined that a second mortgage is the answer to your financial needs, you need to do a few things. You need to make certain that the reason why you're getting a second mortgage is worth borrowing against your home. For example, if the only reason you're getting a second mortgage is to purchase a new motorcycle, and you already have two, you need to think if the end result is worth taking out a second mortgage. Also, you need to get your home appraised. A home appraisal will establish the current market value of your home and be the value used to determine the details of your second mortgage. After the appraisal, you need to find a lender. Check with the lender who you used for your first mortgage to see if they're a good source for a second mortgage. Also look online for second mortgage lenders and resources. You never know where you'll find the best rate on a second mortgage. And finally, after you've compared lenders and made the decision that a second mortgage is the best choice, pick your lender and keep up with your payments. Remember, since you're borrowing against your home with a second mortgage, you are putting your home on the line.
A second mortgage is a sensible solution to acquiring funds for school tuition, home repairs and renovations, and even vacations and cars. But before you run out and get a second mortgage, you need to weigh the benefits and disadvantages of a second mortgage, and determine if the reason for getting one is worth borrowing against your home.
Monday, December 22, 2008
Understanding A Second Mortgage
Sunday, December 14, 2008
Where to Buy Second Hand Stair Lift Units
A stair lift second hand unit should be bought from a reliable source. We need to have it assembled and installed in its new location firmly and safely. Thus, we should know where to buy a stair lift second hand model.
Stair lifts are important help accessories for the disabled. But when we prefer stair lift second hand units we should buy them from reliable sources. How do we do this?
We should buy stair lift second hand units directly from manufacturers and also from companies that sell repaired stair lifts that are conditioned good as new. It is safer to obtain second hand stair lifts from them than from people who own them but no longer need them.
Manufacturers and dealers thoroughly check and condition stair lift second hand units before they sell them to make sure they?re safe. They have a name and business license to protect.
Moreover, these manufacturers offer guarantee for their products. They know more about the safety standards regarding stair lifts, especially second hand ones, and are more knowledgeable about what part of a stair lift second hand item needs reinforcement and fix them, too.
Another thing is that manufacturers and dealers are experts when it comes to assembly and installation of stair lifts. If we buy a stair lift second hand from a former user, chances are that person will not include installment as part of the deal. We will have to install the thing ourselves.
If we are not knowledgeable about stair lift installation we may not be able to safely do it, to the detriment of the new user. This is not to mention having to install it along the stairs or opposite it.
Another advantage of buying stair lift second hand from a manufacturer is the free delivery service. It?s hard to get the thing ourselves and transfer it to our place, let alone install it ourselves. If we purchase it from a manufacturer or dealer, we save ourselves from all these hassles.
Manufacturers will surely have a variety of models for us to choose from. While buying a stair lift second hand from a former user will surely give us no other option but the unit the former owner has, manufacturers can offer us several options. And the important thing here is that a manufacturer can check out our stair dimension and style and recommend a suitable stair lift second hand model.
Buying a stair lift second hand from a former user only to find out after paying for it that it is too big for our staircase is a big problem. With dealers or manufacturers, a stair lift second hand model fitting our staircase-dimension and design?is no problem at all.