antil.alisha 4 days ago
In case of emergency financial requirements, how long will one wait to take another loan on the same property?
The answer is not too long. By resting on the home equity, refinancing is possible. The option of second mortgage loan eases this requirement of funds. Let's understand this concept with an example.
A person avails Mortgage Loan popularly called loan against property. The loan amounted to Rs. 30,00,000 for which, he regularly paid EMIs. Till date, Rs 10,00,000 out of the loan amount is already paid, and the current valuation of his property is Rs 50,00,000.
The initial loan of Rs. 30,00,000 is the first mortgage loan.
Market value - Balance of first mortgage loan = Home equity.
In this scenario, home equity is Rs. 30,00,000. Based on this home equity, the homeowner can avail another loan on the same property, popularly known as a second mortgage loan.
Hence, one can avail a second mortgage on the same property to...
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Wednesday, Jul 18, 2018