Looking for a way to free up some cash? (Of course you are!) One option is to take out a second mortgage on your home, which entails using your house as collateral to obtain another loan in addition to your first mortgage. It allows you to access the equity in your home, which is the difference between the balance of your original mortgage and the current value of your home (e.g., if your home is worth $250,000 and your mortgage balance is $200,000, you have $50,000 in home equity). Most mortgage lenders will allow you to borrow up to 80% of your home’s equity (which for the above example would total $40,000).
Second mortgages are popular right now thanks to America’s robust housing market, with median home prices hitting a record high of $239,700 in May—up 4.7% year over year. So if you’re one of those lucky ducks who’s built up a large sum of equity in your home, getting a second mortgage is one way to boost your cash flow.
But there are some things you should know first.
For all of your real estate needs in the Auburn-Opelika area please contact me at (334) 332-7263 or email me at LauraSellers01@Gmail.com or visit my website. I look forward to helping you buy the home of your dreams or sell your existing home. Search for Auburn homes for sale or Search for Opelika homes for sale here.