Do you need to know if a home can be mortgaged without a mortgage? In today’s world of secured debt, the answer may surprise you.
The good news is that with the mortgage process is evolving and being used more widely for all consumers it will become easier to secure financing for your home. But the problem will be finding an appropriate lender to do business with. It is no longer as easy as finding a credit union that can work with you on the terms you are looking for.
In the past, the main type of mortgage available was the first mortgage loan. This type of loan was secured by an asset or collateral and was usually for a period of ten years. Since there was a risk that the borrower would default the bank would have the right to repossess the collateral if the borrowers were unable to make their mortgage payments.
The second type of mortgage available is known as a second mortgage. This type of loan is secured by the property you own.
However, even in today’s challenging economic environment, a second mortgage can still be secured through a mortgage on an existing property. If you have the equity in your home you may find that it will be very difficult to get a loan for a mortgage with a credit card, however, you may be able to refinance the mortgage.
Today the second mortgages are becoming a common form of home financing. While many lenders will only offer this type of mortgage with a credit card, there are other lending institutions that will work with you. By working closely with your lender you can be sure that you can use your home as collateral to secure the funds you need to start or maintain a home.
Your current financial situation will play a major role in whether you can take out a second mortgage. You should understand what your income and expenses are, as well as how much you owe on your existing mortgage. By understanding these details you will be able to provide the lender with a very accurate picture of what your monthly payments will be and determine if you will be able to afford your new mortgage payment each month.
When applying for a second mortgage with a credit card the lending institution will take all of your current information and compare it to your financial plan. Once they have determined that you can make your monthly mortgage payment they will then present you with an application for a second mortgage from their credit card company.
The main difference between a regular mortgage and a second mortgage is that a second mortgage is secured by your home. If you cannot pay off the mortgage the bank can foreclose on your home and take away all your assets.