If a home owner needs to acquire additional financial funds, he/she may wish to consider obtaining a second mortgage loan. Second mortgage loans are loans that a granted in addition to primary mortgage loans, using an individual's home as collateral. An individual will usually acquire a second mortgage loan from the same lender that provided him/her with his/her initial mortgage loan. A second mortgage the same way that a primary mortgage does.
When an individual is granted a second mortgage, he/she will be provided with a certain amount of credit. He/she will be permitted to spend the amount that he/she is granted and he/she will then be required to repay this amount. Repayment occurs over an extended period of time, most frequently enduring for 15 years or 30 years. Over the designated time period, an individual will make monthly payments. These payments are usually for fixed amounts, though this may vary depending upon the type of loan an individual obtains.
There are a number of suitable reasons that an individual may seek a second mortgage loan. These types of loans are most suitable if an individual needs money for a large purchase or a one-time payment.
For example, an individual may acquire a second mortgage loan in order to purchase a motor vehicle. These mortgages can also be used to pay for home repairs, renovations, or medical expenses. For some types of financial responsibilities, specifically those which require payments over extended periods of time, such as college tuition, a home equity loan may be more appropriate.
