2nd Mortgage Tips

2nd mortgage loans can have term lengths as long as 15 or 20 years while others may be as short as 12 months.

When setting up your 2nd mortgage loan, in combination with your primary loan, you should make sure your mortgage lender (or broker) clearly explains the the repayment terms and they suit your needs.  In order to get the best terms for your needs, your lender or broker will have to have a clear understanding of the purpose of the 2nd mortgage. 

For example, if you need to borrow $35,000 to build a stone patio and deck onto your existing home you may not want a 2nd mortgage loan that requires you to repay the principal within 12 months because the monthly mortgage payments may be too high for your budget.