Home Equity Loans, Second Mortgages 

Do you need to tap into your home's equity to pay for a home remodeling project or to pay off a credit card? A home equity loan is a fixed or adjustable rate loan that is secured by the equity in your home.

With a home equity loan, you borrow a lump sum of money to be paid back monthly over a set time frame, much like your first mortgage. The terms home equity loan and second mortgage are often used interchangeably.

The process for a home equity loan is similar to your first mortgage. The closing costs are usually lower and, although the interest rate is higher on a home equity loan, the interest paid is tax deductible. An appraisal might be required on your home to determine the home's market value.

The best time to get a 2nd mortgage is when the interest rates on first mortgage are going up.  There usually is no need to refinance a first mortgage unless the numbers show otherwise.

Second mortgages are available to a wide variety of situations.  Here are a few that are more common:

• Cash Out - People get the funds to consilidate their bills to make the debt more manageable.  You can also use the cash for home improvements, vacations, college tuition or whatever you want!
• Refinance an existing 2nd mortgage
• Buy investment property
• Second mortgages on investment property
• etc.

In addition to those different scenarios, home equity loans are available to a wide variety of credit types as well.  For instance:

• Subprime second mortgages with credit scores down to 500
• Stated Income 2nds

To get a good deal on a home equity loan, click on the button below.