If you find yourself in a situation where you need money to cover a major expense, a second mortgage could be a great way of using your home’s equity to your advantage. A second mortgage is a type of real estate loan that allows you to take another loan against a property that is already mortgaged, by borrowing against the value of your home.
How Does A Second Mortgage Work?
With a second mortgage, your loan is paid out in one lump sum, with your loan term and payment amount set. Once you have paid off your second mortgage, you would have to open a new loan to borrow against the equity in your home again. Second mortgages do differ from home equity line of credit loans, as a HELOC is a revolving line of credit, where your payments are determined by how much you own on the loan. In addition, with a HELOC, once you have paid off what you owe, you can borrow again without applying for another loan.
Many Floridians utilize second mortgages to pay for a major expense such as an unexpected car repair, unpaid medical bills, a home repair or renovation, or to consolidate high-interest debt. Launch FCU offers second mortgages with the follow specifications:
|Loan Type (Fixed or Variable)||Fixed|
|Loan Term||Up to 15 years|
|Loan-To-Value Ratio||Up to 80% of property value|
|Loan Amount||$10,000 to $250,000|
|Annual Percentage Rate (APR)||Up To 60 Months: 4.811% APR*
61-84 Months: 5.045% APR*
85-120 Months: 5.283% APR*
121-180 Months: 5.523% APR*
181-240 Months: 5.768% APR*
Launch FCU Second Mortgage Rates
|Term||Interest Rate||APR* as low as||Closing Fees||Payment|
|Up To 60 Months||4.75%||4.811%||$1,107.89||$1,875.69|