Hi! I am Tim and I am here to talk to you about taking out a second mortgage. The term second mortgage really means in chronological order that it's behind your first mortgage which is usually the mortgage you get to buy your home or may be you have refinanced your home before. A second mortgage is a new loan, totally separate loan that, again, is secured by your home or your vacation home or an investment property that you might have.
To choose a good second mortgage, you really need to know what your needs are, you want to understand how long you should be repaying this loan, because they will generally spread them out over 10 or 15 years and sometimes, 20 years. Try to choose a fix-rate second mortgage, so you know what your payments are going to be for the term of that loan whether it's the 10,15 or 20 years.
Try to repay any mortgage that you have or any loan that you have within the useful life of whatever you are using the money for. If you are buying a car, try to pay it off within five or six years, not 10 years. If you are buying another home with that mortgage then you can spread it out a little longer. The interest is tax deductible, it's one of the only tax deductions left to your mortgages. Credit cards, you can't deduct the interest, personal loans you can't deduct the interest, student loans you can't generally deduct the interest. So, it's become a very powerful tool for people. Equity lines of credit fit into second mortgages, they are a second mortgages. Equity lines of credit are really just like credit cards, are short-term tool; they shouldn't be used for long-term purposes.
Banks would like you to use it for a long-term purposes, because they can make money through the interest. But you really want to make sure you pay these things off in a responsible and a shorter-term manner as possible. If you have questions, you can go and see your local bank, you can call your mortgage broker or your financial planner. Surf the net, use somebody reputable, someone you know, someone you trust, someone your friend or a family member has used and keep it close to home. That's a little bit about choosing a second mortgage, Thank you!
Hi! I am Tim and here to talk to you a little about applying for Pell Grants and Stafford Loans. When you go to college, there are multiple ways to finance college, multiple ways to pay for college. Pell Grants and Stafford Loans are two very common ways to finance some of your educations. Pell Grants are a form of grant generally --
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