The Internet has become an active marketplace as people search for second mortgages. In particular, people have been looking up information on Chase second mortgages. Available in a fixed rate, fixed-term home equity loan or line of credit, the Chase second mortgage can help a homeowner tap his equity.
With a sluggish economy and mounting inflation, cash-strapped Americans are looking for new sources of income. For the fortunate few who still have some equity to tap, financial tools like the Chase second mortgage are an excellent option. Before you consider a second mortgage, it's important to understand the various available types.
HELOC and home equity loan
A Chase second mortgage, like any mortgage offered by a financial institution, comes in two different forms. The first is the home equity line of credit (HELOC). This loan operates like a credit card; it's a line of credit that uses your home as collateral. Your bank will extend you a line of credit based on the amount of available equity that you have in your home. You're required to pay interest only on the funds that you use, which is why many people use it only as a source of emergency cash.
The other type of Chase second mortgage is the home equity loan. This is a fixed-rate, fixed-term mortgage that's taken as a single, lump sum. It's an ideal way to access a large amount of cash at one time, and is typically used on a home improvement project or for debt consolidation.
Benefits of a Chase second mortgage
Once you understand the different types of second mortgages, it will be easier for you to apply the right loan to your needs. Since a second mortgage is generally used to pay for a vacation, school tuition, home improvement, or debt consolidation, using the right one is essential.
- Vacation: If you use a second mortgage for a vacation, you may be living beyond your means. If it can't be avoided, consider using a HELOC, and then quickly paying off your balance.
- School tuition: To make these large payments, use a home equity line of credit, and then pay off the amount you borrowed during the year.
- Home improvement project or debt consolidation: These expenditures tend to be large, one-time payments. In this case, use the home equity loan. Lock in at a fixed rate, and pay off the balance on a monthly basis.
If you're one of the fortunate few who still has equity in your home after the precipitous housing market slide, congratulations. You can access lending options like the Chase second mortgage. Fully understand the differences between a HELOC and home equity loan. Tapping equity is a great way to handle certain expenditures, but only if you do it wisely.