Loan Guide & Debt Repair Articles
 Home Page
 Loan Blog
 - Mortgage Loans
 - FHA/VA Home Loans
 - Bad Credit Mortgage Loans
 - Mortgage After Bankruptcy
 - Refinance
 - Refinance After Bankruptcy
 - Bad Credit Mortgage Refi
 - Home Equity Loans
 - Bad Credit Home Equity Loan
 - Refinance Home Equity Loan
 PayDay Loans
 Credit Counseling
 Debt Consolidation
 - Bad Credit Debt Help
 - Tax Debt Help
 Auto Loans
 - Bad Credit Car Loans
 - Car Loan After Bankruptcy
 - Refinance Car Loan
 Personal Loans
 Student Loans
 Credit Cards
  - Bad Credit Credit Cards
 Loan Calculators
 Credit Help

Mortgage Loan Advice

Get A FREE Refi Rate Quote!

Finding loan debt repair articles

2nd Mortgage Loans or Home Equity Loans

Homeowners often group 2nd mortgages and home equity loans into the same category. While 2nd mortgages are a type of home equity loan, other equity options also fall under home equity loans. For example, when choosing a home equity loan, homeowners may opt for a home equity line of credit (HELOC). If deciding to tap into their equity, homeowners must choose the best option, a 2nd mortgage or home equity loan.

What are 2nd Mortgages?

When opting for a 2nd mortgage, homeowners receive a fixed amount of money. Similar to the initial mortgage, a 2nd mortgage has a fixed repayment period. Sometimes, 2nd mortgages are confused with mortgage refinancing; however, the two processes are very different. A refinancing creates a new home loan to replace the old, whereas a 2nd mortgage creates a second lien on the property.

Homeowners have the option of selecting a 2nd mortgage with a 15 or 30 year term. The majority of 2nd mortgages have fixed rates. Yet, it is possible to obtain a second mortgage with a variable or adjustable rate.

Before applying for a 2nd mortgage, bear in mind that these mortgages tend to have a slightly higher rate than 1st mortgages. Similarly, rates are determined by an applicant's credit history.

What is a Home Equity Loan?

Home equity lines of credits are not loans. Moreover, homeowners do not obtain a fixed sum in one lump payment. Instead, these credit accounts consist of an open line of credit. This is comparable to a credit card. In fact, debit or credit cards are often used to withdraw funds from a home equity line of credit.

The credit limit on a home equity line of credit is based on the appraised value of your property. Usually, lenders will not approve a line of credit for the full appraisal value. Rather, homeowners with a good credit history may be able to obtain a revolving credit for up to 75% of the home's worth.

Home equity lines of credit benefit homeowners who want the freedom of withdrawing funds on an as needed basis. On the other hand, second mortgages are generally more suited for individuals who require a one-time lump sum of money.

Our Recommended After Bankruptcy Mortgage Lenders:

Top Recommended Companies To Refinance With:
(updated ):

Act Now! Lower your monthly mortgage payment!     - Competitive rates and no hidden fees
    - Bad Credit OK
    - New Purchases, Home Equity & Refinance
    - One dedicated mortgage banker from first call to closing
    - Quick Application with worthwhile results

If you are looking for a mortgage loan but have "less than perfect credit" this company has options for people with credit problems. Complete a short form and get one dedicated mortgage banker from first call to closing with a simple, straightforward process.

Mortgage rates are still low. Refinance & Lower Your Payment!
    - Get Started on a Lower Payment Now!
    - America's #1 Online Lender
    - Save More and Spend Less!
    - No Obligation and Free Expert Advice

Another Great "bad-credit" Mortgage Company! QuickenLoans is also a competitive mortgage company for people with all types of credit including poor credit. Refinance or get new mortgage offers from this reputable Web based mortgage lender.


Loan Articles

Get A FREE Refi Rate Quote!


Home Page | Articles | Privacy Policy | Site Map | Contact     site design by: SEO Marketing