Home Equity Loan Success Stories
Over the last year, we have found an excellent source for fixed-rate second mortgages. We needed this product because many of you refinanced or bought your home between 2020 and mid-2022 when rates were in the 2’s and 3’s, and do not want to touch those mortgages. However, you would now like to access the equity in your home for home renovations, debt consolidation, college tuition, business opportunities, or divorce equity buyouts. So, how do you preserve the valuable low rate you already have while using home equity to accomplish your goal?
The answer is simple: get a second mortgage. The rate on a second mortgage is usually about 1% higher than that of a first mortgage. But the rate is heavily influenced by the borrower’s loan-to-value ratio and credit score. The mortgage term can be 15 or 30 years. There are no prepayment penalties, and the rate is fixed for the life of the loan.
Here are some examples of the second mortgages we are working on or have recently closed:
- One of our previous clients found themselves with credit card debt that had accumulated over the last few years, primarily due to unexpected home maintenance and college expenses. They got a second mortgage and saved over $1,000/month on debt service.
- Another client wanted to start a business and needed capital to purchase equipment. After looking into a business loan, they quickly realized that they could use their home equity at a much lower rate.
- Finally, a third client needed money for a divorce equity buyout. Rather than refinancing to tap the equity and lose her 2.75% first mortgage, she took a second mortgage to give the leaving spouse his share of the equity.
If you would like to explore options to access the equity in your home, please get in touch.
