By Zulika van Heerden ©2007

Second bonds might be the solution for some homeowners. Being a homeowner leads to a great many expenses, both expected and unexpected ones. In most cases, new homeowners calculate the expected costs into their budget so they understand how much house they can afford to purchase while still having some money to play with.

Unfortunately, those unexpected costs can add up and lead to spiralling debt and a life of stress-related days. Maybe you think you can handle it on your own and you are doing great until the unexpected repairs seem to come on a regular basis, knocking at your door and depleting your wallet every month instead of every year. Then, you suddenly realize that this is what they don’t teach you about either in school or at home.

Perhaps it’s time to do something sensible about it instead of using the credit cards to pay for the necessary repairs or borrowing payday loans to pay off the servicemen and equipment. After all, a second bond is going to have lower interest rates than either your credit card account or a payday loan.

Plus, in most cases, the interest charges are tax deductible and can lead to added savings for your bank account at income tax time. Better still, since you can select a term of 10 or even 15 years, the monthly payments might not even be that large. But just what is a second bond?

Second bonds are simply loans that are taken out after the first or primary bond. They are often referred to as second mortgage loans and are often placed on a home while the primary mortgage is still in existence. Although the homeowner will need to make the same type of decisions with a second mortgage as with a first mortgage, the expense is considerably less.

The homeowner who is interested in a second mortgage bond will need to determine the type of loan they want to obtain such as variable rate or fixed rate. Plus, he will also need to submit an application, similar to the one he submitted for his first bond, as well as prove that he is capable of repaying the bond. Additionally, he should calculate how much money he would need to borrow in order to cover all of the new expenses.

Once you have acquired a second mortgage bond, revamp your budget to include your new payments. You can use the proceeds to pay for the new repairs, pay off existing credit card debt, and possibly have some money leftover for any new repairs that happen to arise in the near future.

To apply for a second bond you will have to fill out a short application form. You will then receive a FREE quote from well established, nationally recognized lenders. You do not need to decide now whether a second bond is for you.

Just apply and compare the repayments to your current situation. There is no obligation on your part. If you decide that it is not for you, you simply do not have to accept the offer. You have nothing to lose and everything to gain.

20 Second Application