Second Mortgages
in Colorado

We’ve Got Your Six!

Do you need extra money as a down payment on another property, financing for home upgrades or repairs, or for other expenses? One option is to take out a second mortgage. You can do this if you have enough equity built up in your home to borrow against it.

What is a Second Mortgage?

With a second mortgage, you borrow against your equity and receive your funds in the form of a lump sum. You can then use those funds as you require.

A similar product is a HELOC, which takes the form of a revolving line of credit. Another related option is a refinance, where you may borrow funds in excess of your current loan balance.

When Should You Choose a Second Mortgage?

While there are a number of factors to weigh, one major when you are thinking about taking out a second mortgage versus a refinance is interest rates.

Usually, a second mortgage carries a higher rate of interest than a first mortgage. So, if interest rates are low or start decreasing, refinancing becomes a more appropriate option.

Another factor to consider is the ease of procuring financing. Underwriting guidelines for refinancing tend to be stricter than those for second mortgages. So if speed is of the essence, or you need more flexible approval guidelines, you might consider applying for a second mortgage instead.