Cross collateralization is the act of using an asset that’s collateral for an initial loan as collateral for a second loan. Suppose you have two securities, where one security value is lower than the loan value, and if you want to refinance the loan because of the high interest rate, then you cannot refinance the loan.
However, the scholar mortgage team will help you to find out and provide more information regarding the cross collateralization. This tremendous idea will save you coins over the years by reducing the interest rate, keep out form the LMI and other facilities according to your needs and objectives.
To learn more about your specific circumstance, have a detailed conversation with Scholar Mortgage about it and request a free assessment from us right away.