Fixed-Rate Second Mortgage

There are several reasons you might want to choose a Fixed-Rate Second Mortgage. Some of the most popular include:

1. Predictable Payments:
   • With a fixed interest rate, your monthly payments remain consistent, making it easier to budget and manage your finances.
2. Long-Term Financing:
   • Fixed-Rate Second Mortgages often have longer terms, typically ranging from 10 to 30 years, which can lower your monthly payments compared to shorter-term loans.
3. Versatile Use:
   • The funds from a Fixed-Rate Second Mortgage can be used for a variety of purposes, including home improvements, debt consolidation, education expenses, and more.
4. Tax Benefits:
   • Depending on your specific circumstances, the interest on a Fixed-Rate Second Mortgage may be tax-deductible. Consult with a tax professional to understand the potential benefits.

1. Application:
• The process begins with an application, where you provide financial information and details about your property.
2. Approval:
• New American Funding will review your application, credit score, income, and the value of your home to determine your eligibility and the loan amount.
3. Closing:
• Once approved, you will sign the necessary documents and the loan will be disbursed. The funds can be used as needed, whether for a one-time expense or ongoing costs.
4. Repayment:
• You will make fixed monthly payments that cover both the principal and interest over the term of the loan. The term can range from 10 to 30 years, depending on your needs and the terms of the loan.

Fixed-Rate Second Mortgages come with their own set of benefits including:

• No Change to Your Original Mortgage Rate: You can get a Fixed-Rate Second Mortgage without affecting the mortgage interest rate of your original home loan.
• Stability: The fixed interest rate ensures that your monthly payments remain the same, providing financial stability.
• Flexibility: You can use the funds for a wide range of purposes, giving you the flexibility to address various financial needs.
• Lower Interest Rates: Fixed-Rate Second Mortgages often have lower interest rates compared to other types of loans, making them a cost-effective option.
• Home Improvement: If you're looking to renovate or upgrade your home, a Fixed-Rate Second Mortgage can provide the necessary funds without the need for a large upfront payment.

The basic steps for applying for a Fixed-Rate Second Mortgage are the same as other home loans and include: 

1. Pre-Approval:
   • Start by getting pre-approved to understand how much you can borrow and the terms of the loan.
2. Gather Documentation:
   • Collect all necessary documents, including proof of income, tax returns, and property information.
3. Submit Your Application:
   • Complete the application process either online or by visiting one of our branches.
4. Review and Close:
   • Once your application is approved, review the loan terms and sign the necessary documents to close the loan.

Need more details or help deciding which loan fits you best? Contact our loan officers at New American Funding for personalized assistance.