What is a Second Mortgage?
Get a competitive rate on a Second mortgage or a HELOC you can use for debt consolidation, home improvement, education costs, large purchases, and more.
A second mortgage is another home loan taken out against an already-mortgaged property. They are usually smaller than a first mortgage.
The two most common types of second mortgages are home equity loans and home equity lines of credit (HELOC).
Like a first mortgage, your home is used as collateral for a second mortgage. Should a foreclosure happen, the first mortgage lender is first in line to get repaid. The second mortgage lender is repaid next.
![](https://b11capital.com/wp-content/uploads/2022/03/credit-card.png)
Pay Off Debt
![](https://b11capital.com/wp-content/uploads/2022/03/floorplan.png)
Home Improvements
![](https://b11capital.com/wp-content/uploads/2022/03/piggy-bank.png)
Emergency Fund
Home Equity Loan vs. HELOC
Home Equity Loan | Home Equity Line of Credit | |
---|---|---|
Second Mortgage | Yes | Yes |
Disbursement | Cash up front in one lump sum | Draw cash as needed, up to limit |
Repayment | Fixed monthly payments | Open-ended. Interest-only payments often allowed during draw period |
Interest Rate | Typically fixed | Usually variable |
Interest Charges | Interest charges apply to entire loan balance | Only pay interest on amount you draw |
Your total monthly payment
Call Our DSCR Loan Specialist to see what you qualify for.
Call us! (800) 671-6204
Call us today!
(800) 671-6204
![white-logo](https://b11capital.com/wp-content/uploads/2022/01/white-logo.png)