If borrowers need urgent funds against their home equity, they have options either to refinance or to get a 2nd mortgage. If they break their mortgage in the middle of the mortgage term, then they must go through the hefty penalty charges. Refinance also includes legal fee, registration fee, and mortgage prepayment penalty. If borrowers want to avoid those extra costs, then they have another option that is a Second Mortgage.
How much can you borrow on your home equity?
For example, your home is valued at $500,000 and your first mortgage is $250, 000. How much amount you can take out? You can get 80% of home value minus your first mortgage ($500,000*80% – $250,000= $150,000). Based on this example, you can take out $150,000 from your equity for both Refinance and Second Mortgage options.
Along with that, before taking out a second mortgage or refinancing your mortgage, you must ask yourself a couple of questions: do I have a good credit score? Do I have a stable source of income to pay off the hefty penalty or If I have bad credit history or unstable income, then what options I am left with? The answers to these questions will help you to decide which option is suitable towards your situation.
To continue with, if borrowers have low beacon score and their income source is also unstable, consequently, they cannot be qualified from traditional lenders. In this situation, what borrowers can do? Do not worry, we are dedicated and experienced brokers in GTA can help you take out a second mortgage through Sub-prime and Private Lenders if you have low-income problems or a bad credit history.
At MB Mortgages, we can offer you second mortgages up to 90% Loan-To-Value. Second Mortgages can be used to consolidate high interest debts, home renovations ,emergency money, leisure or to pay for new expenditures. Your First mortgage will still be existing and will not be replaced by the second mortgage. We have in-house funds available for rush closings without income and credit check.
On the other hand, MB Mortgages is also here to help you with the refinancing of your current mortgage. We can evaluate your financial situation and give you smart financing options. Refinancing could be done for various reasons. Please give us a call to get an idea what could be beneficial for you either Second mortgage or Refinance.
Here are the few main points between the two options: Second Mortgage or Refinance:
Why choose us-
As a leading Mortgage Brokerage, we have strong relations with multiple banks and numerous lenders. We work with Canada’s leading lenders to provide you a mortgage solution that fits your budget. Our mortgage and financing process is amazingly simple, we represent you and match you with the best suited mortgage as per your needs. This way we can guide you through this complicated process with our years of mortgage financing experience.
• We are dedicated and professional Accredited Mortgage Brokers in GTA.
• We are well trained and have experience in the mortgage financing field more than 10 years.
• We can shop around with different lenders to get you the best possible mortgage rates and conditions as well.
• We have different options for different income and credit level with access to number of private lenders to suit borrower’s needs.
We are a professional mortgage broker in GTA. We can help you secure a mortgage with best mortgage interest rates. We are located at 2 County Court Blvd., Suite # 438, Brampton, ON L6W 3W8. Call MB Mortgages Inc. today at 905-458-6929/416-939-7131 for your queries or you can email us at: [email protected] or you can visit our website at www.mbmortgages.ca
The information provided in this blog post is intended to provide general information. You should consult with a mortgage professional to fully determine the scope of your situation. MB Mortgages shall not be held liable from usage of the information provided on this page. Individual situation may vary.