When looking to finance a home improvement project, many people turn to 2nd mortgages for funding. Significant value can to added to your home by making a simple improvement like an additional bathroom or hardwood floors. Rather than settling for higher interest home improvement loans or line of credit, a fixed rate 2nd mortgage may save you thousands of dollars due to fixed, lower interest rates.
One of the most common reasons for taking out 2nd mortgages is to increase the value of your property. Use the equity in your home for a home improvement, and you improve the appraised value of your home over time. In order to reach the break-even point in your refinancing efforts, you need to live in your home a certain number of months to recover the costs of the loan. Make an improvement to your home, and you're more likely to continue living in it for years to come.
Compare Rates on 2nd Home Improvement Mortgages
The money you receive from 2nd mortgages is loaned in a lump sum. Rather than a line of credit, in which you can draw funds from a credit card of checking account, a home equity loan can be a more stable type of loan. You know how much the loan payments are every month, making it easier to create a financial payment plan.
If you are going to refinance your home, check online at one of the many quality mortgage referral sites that can recommend you lenders with competitive interest rates and closing costs. Fill out the online form of one of these sites and you'll receive up to four quotes from different lenders. With so many lenders offering low interest rate 2nd mortgages, there has never been a better time to find competitive rates online.