Second Mortgages: scary or valuable? We all know that refinancing our homes and taking out mortgages are stressful, confusing topics. In fact, most people don’t want to even think about their mortgages any more than they have to. However, taking out a mortgage and even taking out a second mortgage can help you do some amazing things. Here are four things you can do by taking out a second mortgage.
Remodel your home
By taking out a second mortgage you can finally have the opportunity to renovate or remodel your home. A Toronto-based mortgage specialist from the Huffington Post wrote that understanding the terms and conditions of taking out a second mortgage should be the first step in figuring out the process. By having a large amount of equity in your home, having a high credit score and having a verifiable income you may be able to qualify for a low-interest rate mortgage.
Pay off debt
Taking out a second mortgage can also help to pay off any debt that you may have between you or your spouse. According to a regional sales manager of a Vancouver mortgage broker, high-interest debt, high-interest rate especially credit card debt, can be alleviated by being transferred to a lower interest debt, like a second mortgage. This helps to consolidate your debt and perhaps clear your loan if the property appreciates. While this may seem like a gamble, hoping for the market to swing in your favor, being able to pay off debts that weigh heavily on your mind is priceless.
Buy something big
A second mortgage could help you tap into your home’s equity and could even help you pay for something else. Some people take out second mortgages to pay for their children’s higher education. Other homeowners take out a second mortgage to buy a second home. Again, it may be a gamble, waiting on the real estate to appreciate in an effort to clear the loan, but the payout could be beneficial. Having two pieces of valuable property, like the property appreciating in Canada right now, could leave you set for life.
Make an investment in your life
While taking out a second mortgage may seem like something that is too confusing for you to even consider, think again. There are so many more reasons, even than those mentioned here, to take out a second mortgage than not to these days with more foreign money flowing real estate market in Canada and real estate becoming more valuable.
So there you have it! These 4 things can really make a difference in your life, just from choosing to get a second mortgage. Remodeling your home is a great investment, not to mention a great excuse for inviting the neighbors over. Paying off your debt can be a great way to relieve you of unnecessary stress. Buying a big ticket item that you’ll only dreamed of could really be exciting. Last, but not least, making an investment can set you up for long-term financial freedom. Any one of these options would be great for any homeowner.