Everything You Need To Know About Second Mortgage

In this blog, we are discussing what exactly a second mortgage is and why it is used.

What is a ‘Second Mortgage’?

A second mortgage (junior-lien) is a type of subordinate mortgage made while an original mortgage is still in place. Let’s say, you secure a loan using the property as collateral for the second time and the first mortgage is still in effect. Home Equity Lines Of Credit (HELOCs) and Home Equity Loans are common examples of second mortgages.

Why does it come with a higher interest rate?

In the event of defaulting a payment, the original mortgage tends to receive all proceeds from the liquidation of the property until it is reimbursed completely, then the second mortgage gets repayments. If there is not enough equity to pay off both the loans, the second mortgage lender is at the risk of not receiving the full amount owed. This is the reason, why the interest rate for the junior-lien is way too higher than the first mortgage.

The first mortgage is basically used for buying a property. The second mortgage is utilized to meet expenditures that are beyond to be financed such as funding a child’s school/college fees, buying a vehicle, or repaying other outstanding debts.

Why is a second mortgage preferred?

Second mortgage is usually obtained to meet the following purposes:

• Merge other higher interest debts into a single lower interest payments
• Creating a Home Equity Line Of Credit (HELOC)
• Home repairs & renovation
• To avoid paying PMI on their first mortgage

If you are looking for a second mortgage, you should approach an alternative lender like Global Capital Commercial. The company ensures to provide the best possible solutions related to the Second Mortgage, while ensuring fast approvals and competitive interest rates. GCC offers second mortgages up to 80% LVR with very competitive pricing.

For more information or apply for the loan, contact the company immediately. 

A Thing or Two about Property Development Management Services

Property management is basically the operation, control, and oversight of real estate. It encircles processes, systems and manpower that are needed to manage an acquired property, including acquisition, control, accountability, responsibility, maintenance, utilization and disposition.

It also refers to the management of personal property, equipment, tooling and other physical capital assets that are used to build, repair, and maintain a property.

Responsibilities of a property development management service provider include:

• Conducting a comprehensive screening or testing of an applicant's credit, rental history, criminal history and ability to pay
• Preparing lease contract and accepting rent using legal documents approved for the area where property is located
• Providing mitigation and remediation related to maintenance issues
• Preparing and maintaining necessary records for tax and legal purposes
• Providing expert oversight of all phases of the development process, straight from project advisory, feasibility planning to project closeout

A development management service provider uses advance technologies to carry out complex projects – ground-up construction to build-to-suit or redevelopments.

Project development services include:

• Planning
• Complex analysis of the project
• Investment development
• Development advisory and management
• Redevelopment
• Development feasibility studies
• Construction financing and management
• Build-to-suit development
• Site search and acquisition
• Strategic resource management
• Market research and demand analysis
• Quantifying and managing development risk through determining variables like construction time, cost and sales values
• Project structuring and financing – securing different funding options with banks and alternative lenders
• Project plan and programme establishment – identification, analysis, management, delivery of project in order to ensure success of the project and outcomes

For more information about the development management, consult a reputed company like Global Capital Commercial. The company has a proven track record of delivering commendable property development management services to property developers across Australia.

Global Capital Commercial has an unwavering reputation for providing holistic and integrated services aimed at maximizing profits and proliferating returns.