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
year(s)
per year
per year

Your total monthly payment

Principal & Interest
Home insurance
Property taxes
PMI

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Call us today! (800) 671-6204

Call us today!
(800) 671-6204