Second Mortgage California

Second mortgage California loans are different from first mortgages in several ways. They often carry a higher interest rate, and they usually are for a shorter time, 15 years or less. In addition, they may require a large single payment at the end of the term, commonly known as a balloon payment. Traditionally, second mortgage loans are offered with a fixed loan amount and a predetermined repayment schedule. Some lenders now offer lines of credit that allow you to obtain cash advances with a credit card or to write checks up to a certain credit limit. These often are called “home equity lines” because the equity in your home is collateral for the amount of credit you request. As you pay off the outstanding balance, you can reuse the line of credit during the loan period.

Several factors determine the loan amount a borrower may qualify for, including income, debt and credit history. The second mortgage California above makes assumptions about debt. It assumes that your monthly obligation for all the mortgage debt is 28% of your gross income. It allows an additional five percent for taxes, insurance, condo or co-op maintenance fees, and another three percent to cover all other monthly credit obligations. Based on these assumptions, the calculator estimates the loan amount you may qualify for, based on your income. This is only an estimate. It does not consider many factors you may wish to consider before obtaining a mortgage.

A second mortgage is any loan that involves a second lien on the property. Some second mortgages are for a fixed dollar amount paid out at one time, in the same way as a first mortgage. As with firsts, such seconds may be fixed-rate or adjustable-rate. So, you already have a great interest rate on your mortgage loan. You can still keep that great rate intact and take advantage of a second line of credit called a second mortgage California loan. It requires no equity and is available in amounts up to 125% of the value of your home. 

A Second Mortgage can help you:

  • Pay off high-interest credit card debt.
  • Finance necessary home improvements.
  • Get cash for unexpected emergencies.
  • Plan financially for your child’s future.
  • Buy a new car.
  • Take that much-needed vacation.