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In today’s housing market, borrowers are taking advantage of many mortgage types, the most popular being second mortgages. The Indigo Mortgage team is here to explain why second mortgages are currently the most common type of mortgage loan.

The housing market just came out of the lowest rates in our history. A majority of homeowners took advantage of these low rates. At the same time, homeowners’ equity has shot through the roof. Many homeowners are now wanting to utilize that equity. With full refinances not being their best option due to interest rates, homeowners are turning to second mortgages to take advantage of their equity. Second mortgages carry a higher rate than the first, but the balances on second mortgages are much smaller than that of the first mortgages. This means that the combined payments would be lower than if they were to refinance their mortgage.

At Indigo Mortgage New Mexico, we offer evaluations to borrowers to determine which option is best for them. If you want to utilize your home’s equity and are interested in a second mortgage, reach out to us. We are now approved for processing second mortgages through one of our lenders. Give us a call, or stop by our Albuquerque office today!

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