Quick, what’s the first thing that comes to mind when you think of “second mortgages”? For some it could be that shady looking character in a smoke-filled pool hall… guys with gold chains and a baseball bat nearby. Maybe you’re thinking of someone in financial trouble. Or maybe it’s just someone who doesn’t want to pay outrageous costs and penalties to refinance their existing mortgage.
The mere mention of 2nd mortgages conjures up all sort of images. Most of them, negative. For many, a 2nd mortgage can be a last resort solution during a financial crisis. For several others, it can be an opportunity to save money. That’s right, to save money.
Sure, 2nd mortgages carry a higher interest rate than 1st mortgages but, they can also serve a purpose. One of those purposes can be to save you money. Yup, I said it again. There are some new trends emerging with today’s new mortgage products that are forcing consumers to seek other options. Two of these trends are INFLATED PREPAYMENT PENALTIES and NO FRILLS MORTGAGES! Read the rest of this entry »