Did you know that when money is tight, you might be able to use your home to ease your financial burdens? While this might be news to you, at MortgageDepot, it’s our specialty.

If your mortgage payments are getting the best of you, we can help. Whether you want to refinance your mortgage, apply for a loan modification, or get a home equity loan or line of credit, we have a creative solution to meet your needs.

What if you need cash but don’t qualify for a cash-out refinance? There might be another path. Today we’re going to discuss how restructuring your first mortgage and using a stand-alone second mortgage to get cash might help you reach your financial goals.

Restructuring vs. Refinancing

Loan restructuring and refinancing sound similar, but they are different processes. Here is what you need to know:

  • Refinancing: Refinancing replaces your current mortgage with a new one. The new mortgage usually comes with a lower interest rate, shorter repayment period or both.
  • Restructuring: Loan restructuring, also called loan modification, modifies your existing mortgage to prevent default. Restructuring might include a lower interest rate or extended repayment period. This process is usually reserved for homeowners who are experiencing financial hardship.

What is a Stand-Alone Second Mortgage?

A stand-alone second mortgage is taken out by itself, rather than at the same time as the first mortgage. Home equity loans are an example of a stand-alone mortgage. HELOCs are a version of a stand-alone second mortgage, although they involve a revolving line of credit instead of a lump-sum payment.

Loan Restructuring and a Stand-Alone Second Mortgage: Bringing It All Together

If your mortgage payments are high and cash is a must, you might be able to use loan restructuring and a stand-alone second mortgage to save your transaction. This is an attractive option if you don’t qualify for a refinance. If you restructure your mortgage, you might reap the benefits of a lower interest rate or extended repayment period.

What about cash? Instead of a cash-out refinance, you can use a stand-alone second mortgage to get your hands on the money you need for home improvements or other needs.

Contact Us Today!

If you’re looking for an out-of-the-box way to reach your financial goals, we can help. Connect with us today to learn how to make the mortgage process work for you!

Contact one of our loan consultants to learn more.

Have questions or need help?

Call us now at 800-220-LOAN

Request a call back or email us your questions!

Get Started

No obligation quote