Deciding if a Wa 2nd Mortgage
is the Way to Go

When extra money is needed, many people in the state turn to a Washington 2nd mortgage as the solution. This is a great way to get money out of built-up equity, quickly and efficiently. It also helps protect the terms of the first mortgage. But, is it the only way to go?

Absolutely not! There are a few other options existing homeowners have at their disposal to take advantage of equity when the money is needed. Each of the choices has its situational pros and cons. Sometimes a second mortgage is the best way to go. Other times, it's simply not. The three main options here include the 2nd mortgage, a total refinance and even a equity line of credit.

2nd Mortgages have Their Perks

You're 25 years into a first mortgage and your roof, water heater and plumbing all go at once. You need money and you need a lot of it fast!

This is an ideal situation for a second mortgage. Why go through a total refinance when a smaller 2nd mortgage can take care of the problems and put a little extra money in your pocket, all for generally a much shorter-term payment. Redoing the first mortgage would be like starting all over a quarter century into the game!

Refinancing Can Make "Cents"

You're five years into a mortgage and your credit has improved, but you'd like to pay off some bills and put a new roof on the house.

This could be the ideal situation for a total refinance instead of a 2nd mortgage. Since the time invested in the first mortgage isn't all that long, it's worth checking to see the bottom line result in both scenarios, especially when cash is taken out to cover the expenses you'd like to handle.

Hooking a Line of Credit

You're several years into a first mortgage and a few unexpected expenses have cropped up. They're too big to handle with regular credit cards, but they don't seem large enough for an entire mortgage to be drawn up.

This is where an equity line of credit should be compared very closely to a 2nd mortgage. If expenses are fairly small, the line of credit might come with fewer fees and a faster pay off. In some cases, however, the bottom line figure of the Washington 2nd mortgage might make more sense.