2nd mortgages are specific to borrowers needs

Your Second Mortgage

Often times when people talk about second mortgages and home equity loans or lines of credit they put them all under one roof; a second mortgage is different in that it provides you with a fixed amount of money payable over a fixed time period. Most 2nd mortgages are structured to be repaid in equal installments that will pay the loan off in entirety by loan end. This is somewhat different than home equity line of credit programs that are most often riddled with nuances that make the loans very specific, in terms of loan repayment schedule and access to credit, yet allow you to draw out money multiple times.

Does a 2nd Mortgage fit your borrowing needs?

A 2nd mortgage is titled as such because it is a second loan separate from your primary mortgage. Because a 2nd mortgage is not first in line to be fulfilled in the event the borrow defaults on the loan it does carry a slightly higher interest rate to offset the inherent added risk. With refinance cash out loans you can draw upon the equity in your home and capture a rate that will be lower than 2nd mortgages offered; however, if you are locked into a low rate on your primary loan then it would not make sense to adopt a higher interest rate just to get cash out one time. A home equity line of credit (HELOC) is most convenient if your cash needs are stretched out over a period of time. Home equity lines of credit invariably come with adjustable interest rates, but can be fixed if refinanced into a fixed dollar second after you withdraw all the money you want. Finally, a 2nd mortgage is best if you if you want all the money at one time and you don't want to refinance your primary loan. Also, some homeowners take out seconds to avoid paying mortgage insurance on their first mortgage.

Are 2nd Mortgages given to current market conditions?

Interest rates were recently at 40-year lows and subsequently mortgage rates were recently at forty year lows. The refinance boom allowed for many new entrants into the mortgage industry. Today as rates are rising and the number of potential customers is shrinking many mortgage companies will be competing for sheer survival, which means good deals for consumers. The current climate of the mortgage industry provides for deals on 2nd mortgages at good fixed rates. Let us help you compare free quotes today - make lenders struggling for survival win your business!