Archive for the ‘Mortgage’ Category

Second mortgage explained

Sunday, April 29th, 2012

Many times it may such happen that you are in dire need of hard cash for some emergency. But you don’t have much liquid cash with you right at the moment. You find yourself in the midst of the ocean without any idea about what to do. But don’t worry as your property can help you regarding this. Property equity loans also called second mortgage act as a sort of credit card for you. You can borrow loan depending on your requirement against the property. The best part is the interest in not much higher since many government institutions also give such loan. But then there are certain qualifications that you have to loan be eligible for such loan.

There is a way of calculating about the loan amount that you can get against your property. Suppose you have a property worth Rs. 50,000 and your outstanding loan in the market is Rs.10000. Then you are eligible for a loan of amount Rs.40000 only. In case your outstanding amount exceeds your property value, then you are not eligible for second mortgage.