Second Mortgages San Jose CA

Why should you or shouldn't you take out a second mortgage or a home equity line of credit instead of refinancing?

Local Companies

NoJa Mortgage Corp.
408-841-9400
2059 Camden Ave 231
San Jose, CA
Alliant Real Estate & Financial Service S
(408) 558-9800
2323 S Bascom Ave
San Jose, CA
Wells Fargo Home Mortgage
(408) 723-6600
1021 Blossom Hill Rd
San Jose, CA
Winokur & Gage Real Estate & Mortgage Company
(408) 559-1999
1975 Hamilton Ave
San Jose, CA
New Century Mortgage
(408) 295-5333
2001 Gateway Pl Ste 700W
San Jose, CA
Pacific Residential Financing
(408) 260-2528
3031 Tisch Way
San Jose, CA
Lupo Enterprises Inc
(408) 978-7693
San Jose, CA
Earl Larry
(408) 278-9800
1430 Tully Rd
San Jose, CA
First Bay Area Realty & Mortgage
(408) 453-5200
1630 Oakland Rd
San Jose, CA
Am World
(408) 271-1877
10 Almaden Blvd
San Jose, CA

Why should you take out a second mortgage or a home equity line of credit instead of refinancing?

Well,………You Shouldn’t!!

Why Not?

1. Second Mortgages usually have an interest rant that is twice or even three times as high as your first mortgage rate. You can refinance instead and keep a very low rate. In the long run a second mortgage will just cost you money in interest charges.

2. Home equity lines of credit are designed for mortgage account executives (salespeople) to sell you on using it like a credit card attached to your home. They will try to convince you to use it over and over again.

3. A refinance loan is better for the equity in your home. Very few companies will refinance your home at 100% of it’s value without forcing you to take out a second mortgage. You don’t want to use 100% of your equity because that means you no longer have that equity to fall back on in emergency situations.

4. Second Mortgages and Home Equity lines of credit are designed to provide account executives (salespeople) with another tool to sway you into putting another commission in their pocket.

5. Your equity is a precious thing and should not be used for unnecessary add ons or impulse buys. If you don’t need it and there is even a slight chance you can’t afford it, then don’t get a second mortgage to buy it.

The only reason that I would ever recommend a second mortgage or a home equity line of credit is in an emergency situation. Only when there is no other option and you must take out a loan would I recommend either one of these options.

About the Author:

Benjamin Ehinger has an extensive mortgage background and has studied the industry for many years. To learn more about Refinancing and Second Mortgages visit: http://bandcdriver.tripod.com/second-mortgage.htm.


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Featured Local Company

NoJa Mortgage Corp.

408-841-9400
2059 Camden Ave 231
San Jose, CA