Is a Second Mortgage Different From a Home Equity Loan?
Whether you have a home equity line or second mortgage with large balance or high rate that if refinanced into a new first mortgage would save you money. Second Mortgage is quite different from hoe equity as second mortgage approval is certainly not that easy and the tenure stretches up to 40 years. Well home equity loan is based on the equity of your home, the process is easy and tenure period is flexible. 12 month loan
A second mortgage is a loan taken after the first mortgage, and it is secured against the same assets as the first. It is based on the amount of equity or interest or ownership you have in that property, thus based on the difference between the current value of the property and the amount you owe on it. Second mortgages are arranged for various purposes, such as financing home improvements, college tuition fees, debt consolidation or other emergency expenses. If you have gathered enough equity, another option is to refinance your home and borrow funds in excess of your current loan balance. Usually, a second mortgage carries a higher rate of interest than a first mortgage. So if interest rates are low or start decreasing, refinancing becomes a more appropriate option. Since underwriting guidelines are less strict for second mortgages, it usually takes less time and effort to get a second mortgage than to refinance a loan. Also, a second mortgage may have low transaction costs, so despi
