The 2nd Mortgage and its Role in Your Economic Revitalization
It has been widely held that home ownership is a cornerstone to the economy. When the economy takes a beating, the real estate industry becomes one of the hardest hit industries. Real estate produces a number of jobs for the economy, and when this industry suffers, many others start to suffer in its wake. One of the things that affect the economy is the 2nd mortgage. When you take out a 2nd mortgage, the real estate industry will discuss the effect it has on the economy of the government and the country, but the effect it has on your personal economy is rarely discussed. A 2nd mortgage can have a profound effect on your personal economy and its revitalization.
When you apply for a 2nd mortgage, the lender will assess your credit and your debt to income ratio. They will also assess your income stability and the equity that you have in your home. If all of the pieces fall favorably into place for you, you will be granted your loan. Most people will only think of this loan as extra money to do the things they need to have done, but it is more than that.
When you receive the loan proceeds, you immediately notice that you now have a surplus of cash reserves. When you applied for the loan, you probably had a firm idea of what you wanted to use the money. Perhaps you want to use the money to consolidate your bills. If you have some high interest credit cards or your credit cards are behind a payment or two, you can use the loan to pay off those bills. The loan will have a lower interest rate than the credit cards, thereby allowing you to have more money to spend on other things. This extra money is revitalizing your personal economy. You can then use the extra money to put into savings, or to spend, or even invest.
The 2nd mortgage can also be used to start a new business. If you start a new business, the income from that business will be another form of personal economic revitalization because you will be creating a new stream of income. If the income from your new business surpasses the income from your job, you will be able to replace your job with your business income; thereby creating not only a personal economic revitalization, but also you will be restructuring your income base. You will be creating a new source of income, which is another form of revitalization. The economies of some cities flounder because they fail to diversify their income structure; it is the same for people. You will be eliminating this possibility by creating a new source of income with your 2nd mortgage.
Improving your personal economy will trickle into an increase in the national economy as you use the loan to increase your purchasing power. The more you are able to spend in the stores, restaurants, theatres, and other venues, the more the national economy can be revitalized. You will be able to participate in the circle of economic growth for the country and the world.
Suzanne Simpson is Mortgage Associate based in Canada. She has written many papers on Mortgage and related topics. For more information on <a href=”http://www.canadianmortgagesinc.ca/second_mortgage/“> 2nd Mortgage</a> and <a href=”http://www.canadianmortgagesinc.ca/second_mortgage/canada.html“> 2nd mortgage Canada</a> ,
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