Consider a second mortgage
For members trying to consolidate debt and get out from rising credit card interest rates, a financial solution may literally be on their doorstep — using the investment of their home for a second mortgage or home equity loan.
A second mortgage is a secured loan that would be a secondary lien on one’s property. For those who don’t have first mortgage, a second mortgage is usually called a home equity loan.
There are financial benefits and reasons why someone would consider such a loan. For example, while interest rates are increasing on credit cards, they are decreasing for second mortgages and home equity loans. The interest paid on a second mortgage or home equity loan is generally tax-deductible, while the interest on other loans and credit cards isn’t.
The amount of money available for a loan is based on the difference between the home’s current value and the amount owed on the first mortgage. At Mid American, the county appraisal rate is used to determine the home’s value unless the member wishes to pay for a separate appraisal. Terms of second mortgages can vary; at Mid American, five, seven or 10-year terms are offered.
Many members choose to get such a loan to make home improvements, which can mean increasing the value of one’s home. For a limited time, Mid American is offering a Lowe’s gift card of $100 for those getting a second mortgage or home equity loan of $10,000-$19,000, and $200 for a loan of $20,000 or higher.
For more information about home equity loans and a second mortgage or to apply, click here.
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