Home Equity Loan Comparison Access Your Homes Equity Through A Second
Mortgage Or Equity Loan

Home Equity Loan Comparison Access Your Homes Equity Through A Second Mortgage Or Equity Loan

Home Equity Loan Comparison - Access Your Home's Equity Through a​ Second Mortgage Or Equity Loan
You can access your home equity without the​ cost of​ refinancing with two financing options .​
a​ second mortgage will give you​ a​ lump sum check with a​ fixed or​ adjustable rate .​
a​ home equity line lets you​ tap into your equity when you​ want to​ .​
Both options allow you​ to​ write off interest on​ your taxes and avoid high financing costs.
Benefits Of a​ Second Mortgage
A second mortgage allows you​ to​ borrow up to​ 90% of​ your home’s value .​
The lender,​ which doesn’t have to​ be your primary mortgage lender,​ writes you​ one check .​
You can choose to​ pay off credit cards or​ make a​ major purchase.
Fees are none to​ minimal with a​ second mortgage .​
Rates are usually fixed and last 15 or​ more years .​
a​ 15 year loan lets you​ pay off the​ debt quicker,​ saving you​ cash on​ extended interest payments.
Benefits Of a​ Home Equity Line
A home equity line is​ like a​ secured credit card,​ only you​ are borrowing against your home’s equity .​
You can choose to​ borrow a​ lump sum or​ only as​ needed .​
Most lenders issue checks and a​ credit card.
Rates are adjustable and are based on​ when you​ borrow the​ money .​
You can choose to​ never use the​ equity,​ but just know it​ is​ there in​ case of​ an​ emergency.
One option for new homebuyers is​ to​ put down a​ large down payment,​ securing low rates,​ and then apply for a​ home equity line .​
It’s like a​ safety net,​ ensuring that you​ can still access your cash if​ needed.
Picking the​ Right Financing
Each type of​ home equity loan has its own advantages .​
a​ second mortgage offers secure fixed rates with small payments over a​ longer period .​
It makes sense for large projects,​ such as​ remodeling or​ paying off credit cards .​
a​ home equity line offers flexibility,​ better suited for smaller purchases.
With both types of​ programs,​ you​ still want to​ investigate lenders before applying .​
Be sure to​ look at​ financing companies other than your current mortgage lender .​
You want to​ find the​ lowest rates with the​ best terms by asking for quotes on​ both rates and fees .​
By investing a​ little bit of​ time,​ you​ will save yourself hundreds.

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