Second Mortgage Calculator
See How Much Equity You Can Access!
Features of Second Mortgage Calculator
What Is A Second Mortgage Calculator?
A Second mortgage calculator is a unique mortgage calculator which can calculate second mortgage payments and interest rates. Using a second mortgage calculator you can easily see how much equity you can borrow from your home, along with the costs of borrowing from your home equity. Using the second mortgage calculator, you can easily find out if you qualify for a second mortgage, and know how much equity you can access. A second mortgage calculator is the first step second mortgage lenders use to determine if you qualify for a 2nd mortgage, and how much your 2nd mortgage interest rate will be.
How The Second Mortgage Calculator Works?
The 2nd mortgage calculator is very easy to use, to determine if you qualify for a second mortgage, and to determine your second mortgage interest rate, and monthly payment.
Simply enter your property value, first mortgage balance, as well as any existing second mortgage or home equity line of credit registered on your home. The 2nd mortgage calculator will then show you how much equity you have available in your home, to use as a 2nd mortgage. The 2nd mortgage calculator will also calculate second mortgage interest rate, and monthly payments based on the home equity you have available.
What Are Second Mortgage Rates in Ontario?
Second mortgage rates in Ontario will vary based on the loan to value. The loan to value is the percentage of total mortgage registered on a property. Second mortgage interest rates in Ontario can range anywhere between 5.99% and could be as high as 12.99% depending on the loan to value. When second mortgage lenders determine 2nd mortgage interest rates, they will first calculate the loan to value, and the lower the loan to value is, then the lower the interest rate will be. The higher the LTV is the higher the second mortgage rate will be.
This is all based on equity remaining in the property, which will act as security for a second mortgage lender, in the event the borrower(s) default(s) on the 2nd mortgage terms.
How Are Second Mortgage Payments Calculated?
Second mortgage payments are usually interest only payments. Interest only mean the borrower will not pay down any of their principal balance.
Since second mortgage lenders usually do interest only payments, there is no amortization on the mortgage. Most second mortgage lenders usually offer a minimum of 6 month term, to a 1 year term, potentially with the option to renew the mortgage.
Example Second Mortgage Payment Calculation
A second mortgage payment for a $100,000 second mortgage, with a 1 year term, at an interest rate of 7.99%, is $665.83 per month.
The calculation is as follows: $100,000 x 0.0799% = $7,990. This is the total interest paid for the entire one year. Then divide the total interest for one year, by 12 (the number of months in a year), and you will get the monthly payment for a second mortgage.