Hawaii Second Mortgages
When changing the structure of a first mortgage is not an option, consider a Hawaii second mortgage to tap into home equity. Here are the key points to know about a second mortgage:
* The sum of the value of your home minus the amount still owed determines the maximum amount you’ll be approved to borrow.
* Closing costs on second mortgages are usually low; however interest rates will be higher than on a first mortgage.
* A fixed-rate home equity loan or a home equity line of credit (HELOC) with an adjustable rate are the two primary second mortgage structures.
* Because a lien is placed on the property, defaulting on a second mortgage can lead to the lender initiating foreclosure steps.
