Many people would like to know more about second mortgage refinancingand second mortgage rates. First let’s look at exactly what a can affect the second mortgage rate and how it works. A house can have a number of mortgages, the first mortgage holder has first claim, the second mortgage holder then can be pay off once the first mortgage holder is paid off, a third mortgage holder must wait until the first and second mortgage holders are paid off before they can get paid.
This also means that the first mortgage holder has a higher level of security than the second mortgage holder and the third mortgage holder has the least amount of security. The lower level of security results in a higher level of risk on second mortgage rates. A higher risk level also means that there will be fewer lenders willing to quote second mortgages rates for your property.
Fewer mortgage lenders along with a higher risk level can result in higher second mortgage rates and in some cases you will need a mortgage agent to help you get lower second mortgages rates.
A mortgage agent can arrange for an appraisal of your property, this will help determine the loan to value ratio of your home. A higher loan to value ratio will result in a higher second mortgage rate of interest and once the loan to ratio value passes the 90% mark the chances of getting a low second mortgage rates are not good.
With all transactions regarding any property you should have a lawyer complete all paperwork related to the second mortgage and the second mortgage rate.
A low interest second mortgage rate can be used to consolidate debt from retail credit cards, home renovations bills or personal loans. In many cases interest rate second mortgage Canada will be less than what a credit card company would charge, some credit cards have interest rates as high as 29%. The interest rate second mortgage will be lower because credit card debt is riskier and a mortgage is secured which will have a lower interest rate.
To get the lowest second mortgage rate of interest please give us a call, there is no charge for the initial consultation and we can save you money. Call our agents for mortgages best deals.