Thinking about a second mortgage?

People often get confused about exactly what a second mortgage is. Some think it’s only for debt consolidation, while others seem to believe that it makes your home more likely to get repossessed. The real answers, however, are more complicated than that. The basic idea of a second mortgage is that it takes advantage of your equity – that is, any increases in your house’s value that have taken place since you bought it all those years ago. Instead of letting the equity sit there until you sell your house (which you might not want to do), you ‘free it’ by taking out a loan for that amount. So, to use a concrete example, let’s say that your house was worth $200,000 when you bought it, and is now worth $250,000. If you get a second mortgage, you can get a lo View the rest of this article