Struggling to keep up with bills and financing your lifestyle? Then you’ll want to know more about second mortgages. A good place to start is to learn about the myths about getting a second mortgage. Like most financial options, there are some myths surrounding second mortgages that often arise when homeowners explore this option. We have debunked those myths for your convenience - let’s take a look!
1. Second Mortgages Are Only For People That Are Out of Options
The first myth to debunk is the notion that second mortgages are only for people that are out of options. This is a pure myth because, in order to qualify for a second mortgage, you have to own a home that has enough equity available to borrow against.
Most people that are running out of financial options don’t own a home. You should be proud of the fact that you own a home and have enough equity to borrow against. Even if you're not in a tricky situation, and looking to simply tap into your home equity to finance a new home renovation, or to help with the purchase of a new home, a second mortgage can help with just that!
2. Second Mortgages Are Complicated
One of the most common myths about second mortgages is the claim that they are extremely complicated. This is not true. In concept, a second mortgage is extremely simple.
If you own a home and you have a substantial amount of equity available, you can convert that equity into cash. You can choose to receive the money from your second mortgage in a lump sum or in monthly payments, depending on your lender.
In any case, trusted professionals like the team at Silver Hill Mortgage can walk you through the process and answer any questions that you might have. Not sure how much equity you have? Take a look at our Home Equity Loan Calculator to get an estimate!
3. You Can Only Use the Money From a Second Mortgage for Certain Things
Perhaps one of the most misleading myths about second mortgages of all is when folks claim that you can only use the money from a second mortgage for certain things.
You should know that there are no restrictions whatsoever as to how you can spend the money that you receive from a second mortgage. It’s your home equity - which means you can use the money for anything you wish, whether it be for debt consolidation, new home renovations, business capital, or even medical emergencies. If you are purchasing or refinancing, a second mortgage can help with providing the funding you need for that as well.
Get Your Second Mortgage From Silver Hill Mortgage, No Tricks, No Myths, Just a Great Deal!
Now that you know more about the myths about second mortgages, you’re ready to take advantage of this unique financial option. Silver Hill Mortgage specializes in helping families across Vancouver, Kelowna, Victoria, and the Lower Mainland take advantage of second mortgages and tap into their home equity.
Want to turn your equity into cash? Then give Silver Hill Mortgage a call, we’re ready to help! Talk to Jim today at 604.620.2697.
Silver Hill Blog
Jim Horvath is the principal broker and director of Silver Hill Mortgage Corp., arranging private mortgage loans in British Columbia for over 25 years.