Monday, March 17, 2008

A Second Mortgage

Hubby and I currently have a mortgage on our home. With Baby on the way, we've been seriously considering another home purchase. We need something bigger, with more rooms and more space.

However, rather than selling our current home and buying the next one, we're thinking about keeping our current home and renting it to tenants. This means we'd need a second mortgage.

Home Mortgage is one of the better loans from a financial perspective. The interest is tax-deductible, and it tends to be low (compared to, say, auto loans or personal loans). Getting a second mortgage won't necessarily be easy, however, and it will certainly put a strain on our budget.

So far we haven't yet found the "right" house. But if (when) we do, we're going to need to seriously consider applying for a second mortgage.

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