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Alternative Solutions to Second Mortgages

American Financial Resources does not currently offer second mortgage products such as home equity lines of credit or fixed rate seconds. In recent years, the loan parameters for second mortgages have become increasingly more conservative. Today, it may make more sense to consider doing a cash-out refinance on your primary mortgage. With an FHA loan, you may be able to pull cash-out up to 85% of the value of the property. This alternative can help you avoid the variable rate of a HELOC and the higher rate of a fixed rate second mortgage. Call an AFR mortgage consultant to see if a cash-out refinance might be a solid solution for your home loan needs.

People use second mortgage loans for a wide variety of reasons. Some of these include:

• To pay college tuition, medical bills, or other important costs.
• To have in reserve in case of emergency.
• To purchase a second home or investment property since qualification can be easier for a second mortgage on a primary residence.
• To pay off other higher interest debt.
• To finance home renovations or improvements.

Doing a cash-out mortgage refinance may enable you to accomplish similar tasks. Give us a call today and we can help you weigh your options so that you can make a well informed decision.