Get Second Mortgage Investment Property
in Tucson AZ

Second mortgage in Tucson is the loan that you take against your home on which there’s already a primary mortgage. The second mortgages are junior to the first mortgage and in case of a foreclosure sale it will be paid only after the first mortgage gets repaid. Also second mortgages generally has shorter maturity period in comparison to the first one. You can use a mortgage calculator to determine if you should go for a second mortgage. The second mortgage can be borrowed based on your home equity. The equity is based on the difference between your current home value and the amount you have already paid towards your first mortgage.

Second mortgage – Using it to acquire investment property

Second mortgages can be used to acquire investment property in Arizona But to go for mortgage investment means that you will have to use the equity from your existing property. So that your investment goes in the right direction, you will have to first get your finances in order. That is you will have to first know the equity that has built up on your home, your total income and expenditures, your credit rating, etc.

In order to qualify for a second mortgage, you will have to have a good credit score and enough equity in your home. Equity may have built up on your home if you had been making regular on-time payments on your first mortgage. You should also keep all your bank statements and you income statements ready to get approved for the second home loan.

Mostly people take out a second mortgage for investment in regards to renting. In that case second mortgages are also known as buy-to-let mortgages or investment mortgages. If you are planning to take out a second mortgage in order to acquire an investment property, you should better talk to a financial advisor. Financial advisors help you in better understanding of money management including investments.

You should also use a second mortgage calculator to determine on your affordability before you apply for a second mortgage. It helps you know better the monthly payment amount that you will have to pay toward the second mortgage, the total amount that you will have to pay toward the interest on the mortgage, the number of payments you will have to make, the time it will take you to pay off the mortgage, the total Annual Percentage Rate or APR etc.

Reason for popularity of second mortgages for investment

Some of the important reasons for the growth in the popularity of second mortgages that helps to acquire an investment property are:

1. Option of long-term investment
2. Lower interest rates
3. Rental accommodation is in high demand due to rise in Arizona population, higher divorce rates, etc

An investment property provides you the option to improve your income and is good for long term capital gain. You can even sell off the property later when the home price increases. It is quite a popular way of wealth building. There are many investors in the world that started with the purchase of a property with the help of a second mortgage. Over the past few years, more and more people have been using second mortgages in order to acquire investment property, as well as to secure finance for their retirement communities in Tucson.

Carl F. Pepper, Realtor
carl@MyOwnArizona.com
www.MyOwnArizona.com
(520) 822-6575