Second Mortgages & Subordinate Financing

A second mortgage could be the ideal way to accomplish your financial goals.

Usually there are three reasons to utilize "

subordinate financing

" (a second mortgage)

instead of a new first trust deed

. If you have a fixed rate first trust deed at a considerably lower rate than current market rates, (and you want to access your home equity), then you would likely apply for a second as opposed to replacing your first with a higher rate - wise choice. If your first trust deed has a "pre-payment penalty," and you need some money from your home, you should consider all your financing choices; a new second mortgage could be the most cost effective. If you have great credit and lots of equity, many banks will approve you for a "home equity line of credit" at no cost to you. The actual cost of refinancing your first vs. the "free" equity line would be a motivator to choose the bank's equity line, especially if you didn't need large sums of money; if you do need a large amount, relative to the balance on your first loan, the adjustable feature of an equity line might concern you.

If your credit isn't perfect, you will be disqualified from approval for these bank equity line programs. However, the mortgage marketplace is now highly developed and offers home equity programs for borrowers with credit blemishes. Naturally, as an industry, if we can offer you a second mortgage having less than perfect credit, OF COURSE we can offer you a second WITHOUT requiring typical income documentation! We may just ask you to state your income or ask for bank statements to demonstrate cash flow.

Both fixed rate second mortgages and "revolving" equity lines are available as choices to access your home's equity. As is the case with any mortgage solution utilized to achieve financial goals, a thorough analysis of individual circumstances is highly recommended. Several options should be available to you for consideration. A new second mortgage may or may not be the best option. Our task is to develop that spectrum of choices for you. Since the "explosion" of second mortgage program availability in 1995, One Touch Lending has funded thousands of second mortgages for our clients. Whether you can document your income and regardless of your rating, we will access the entire marketplace of options and develop the choices available to meet your financial needs.