Second mortgage drawbacks are often overlooked by borrowers who are eager to get their hands on extra cash. But there are a few things to keep in mind before taking out a second mortgage. Here are a few considerations to keep in mind:
-The interest rate on a second mortgage is usually higher than the rate on a first mortgage. This means that you'll be paying more in interest over the life of the loan.
-Second mortgages also come with closing costs, which can add up.
-If you have trouble making payments on your first mortgage, a second mortgage could put your home at risk of foreclosure.
-Before taking out a second mortgage, be sure to consider all of your options and weigh the pros and cons carefully.