Mortgage Brokers More About Second Mortgage | Page 6

WHAT YOU DON’T KNOW
ABOUT SECOND MORTGAGES
• You get your second mortgage against your home that means you can get
up to 60% to 80% of amount depending on your home value. You can go
to any lender and apply for the second loan. However, remember that
your first and second loan would count in total which means whatever
amount you borrowed as your first loan would be counted in your second
loan. The second mortgage usually has a low interest rate as compared to
other debts and that is the main reason many people opt for the second
mortgage.
• In some cases, people borrow the second loan and pay most of the first
loan, which has a high interest rate. This way they will still have a loan but
with lower interest rate. It is not a good idea to use the second loan for
holidays or foreign trips, as you would be keeping your home in line.
• The biggest benefit of the second mortgage is it is tax deductible. The
interest amount that you would pay on your second loan can be claimed
when filing for your tax return. The best thing to do is consult your tax
preparer and get some ideas on how you can save your money.