Virginia Second Mortgages

Written by Joy MacKay
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If you're looking to free up some money, one of the Virginia second mortgages might be right for you. By understanding Virginia second mortgages, you can borrow against the value of your house. For the responsible borrower, a second mortgage can mean a lot more financial freedom.

Virginia Second Mortgages & You

Perhaps you have been paying off your mortgage for a while, in monthly mortgage payments. Perhaps you have paid off $100,000 of the $500,000 cost of the house you purchased. You now have equity in the home--or rather, you have a percentage of the home which is yours.

Virginia second mortgages work similarly to the way your first mortgage did. You take out another loan, or mortgage, putting up your equity in the house as collatoral. Now you are able to borrow more money--with a single catch: should you default on the loan, you could lose the equity you have in your home.

Now, for most people, Virginia second mortgages are easy to pay off. In fact, many couples credit a second mortgage with having freed up their finances. However, those who have trouble keeping up with mortgage payments should be cautioned--if you can hardly handle one mortgage, chances are low you'll handle two. Keep in mind the risk is high if you think there's a chance you might not be able to afford the second mortgage payments.

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