Every homeowner has at least once contemplated the idea of a second mortgage. It is a financial asset that can be strategic when you need extra funds for home renovation, debt consolidation, or other major expenses. As lucrative as the idea may sound, it is also important to understand the potential effects a second mortgage might have on your credit score, and before that, one must get thoroughly acquainted with the basics of a second mortgage. As the equity of your home rises, so does your chance to benefit from that equity by taking a second mortgage on that property. A second mortgage is a loan procured against your home, with the primary mortgage being your first. It is an additional loan that, as discussed, can be beneficial in exploring various investment opportunities. Understanding the Impact on Your Credit Score – · Credit Inquiry: While processing the loan application, the lender will review your credit history with a credit inquiry. It might lead to a temporary di
