It's your equity, use it when you need it.
It’s your equity, use it when you need it.
What is a Second Mortgage?
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.
Pay Off Debt
Home Improvements
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
Principal & Interest
Home insurance
Property taxes
PMI
Call Your Reverse Mortgage Specialist to see what you qualify for.
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