What is a Discount Mortgage? How Can I Get One?
A Discount Second Mortgage is a type of contract that has a lower “introductory” interest rate for a specified period of time. This concept is extremely similar to the credit card solicitations that consumers receive in the mail all the time, where the credit card company is attempting to entice the consumer to apply for the card by offering better terms and lower initial payments. The same applies to second mortgages. Lenders who want to increase the number of loans they service will often try to attract new applicants with advertisements of low initial interest rates.
The provisions of a discount second mortgage contract are not very different from any other second mortgage, and the types of loans that can be discounted vary widely from one lender to another. The important thing for borrowers to remember is that their initial interest rate and payment will inevitably increase at the end of the discounted period.
Where do I get a Discount Second Mortgage?
There are multiple lenders who offer discounted second mortgages, with the number increasing every day, but there is no single place a borrower can go to view them all together at the same time. Borrowers interested in discount second mortgages would most likely be better off enlisting the services of a qualified loan broker. Such individuals and agencies have resources to locate lenders with such programs, and can provide information otherwise unavailable to the average applicant.
Those borrowers who choose to investigate loans on their own would likely do best using one of the more popular internet search engines to locate lenders who offer the programs they want to investigate. Very often, borrowers can find discount second mortgage programs through their existing primary mortgage lender. This is sometimes beneficial to the borrower because the existing mortgage company already has most of the information necessary to determine approval.
