How to Hold a Second Mortgage
- 1). Shop around for a second mortgage, advises MortgageFit.com. Obtain quotes from multiple lenders to find the best terms for your loan or ask a mortgage broker for the best program for your situation. Maximize your loan amount while minimizing your interest rate.
- 2). Ask for a loan disclosure form that lists all of the costs and fees associated with the mortgages that you are comparing.
- 3). Apply for the mortgage. Your lender will calculate your home's appraised value. This value will be used in determining your loan amount. You will need to provide all financial and employment information on your loan application. A good credit history may be required to receive the best interest rate for the loan.
- 4). Close on your mortgage. Read the loan documents carefully before signing the note. You may have to pay loan fees and closing costs, depending on the lender. After you obtain the money from the second mortgage, you will have to make monthly payments to your lender. If you default on your second mortgage, your house may be foreclosed upon, even if you are current with your first loan payments.
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