Second Mortgage Home Equity Loan More Than Words

Second Mortgage Home Equity Loan More Than Words



Second Mortgage Home Equity Loan: More Than Words
Words can be fun .​
English words are particularly interesting as​ they are born from a​ variety of​ sources .​
Although it​ is​ a​ Germanic language,​ about 50 percent of​ English is​ based on​ Greek and Latin .​
Have you​ ever thought about the​ origins of​ certain words? Take the​ word phony,​ for example .​
British crooks once used different secret code words .​
On of​ those was fawney,​ which alluded to​ a​ gift ring .​
The thieves would sell these rings,​ claiming that they were made of​ actual gold .​
So,​ the​ word phony began to​ refer to​ anything that was unreal .​
Another interesting word origin is​ connected to​ the​ word hazard .​
This is​ derived from the​ Arabic term,​ al zahr .​
What does it​ mean? the​ dice .​
The term became related to​ several games that used dice,​ in​ Western Europe .​
They learned these games during the​ Crusades,​ which took place in​ the​ Holy Land .​
Later,​ the​ word became associated with danger,​ because some people cheated with adjusted dice,​ and gambling was always a​ risk .​
Similar to​ the​ examples given previously given,​ a​ second mortgage home equity loan may also seem complicated .​
But it​ is​ actually fairly easy to​ learn when it​ is​ broken down .​

Mortgage Meaning
How about the​ word mortgage? Mort,​ meaning dead,​ is​ from the​ Latin mortuus .​
The word mortgage itself is​ from the​ Anglo-French word with the​ same spelling .​
But why would death be related to​ a​ mortgage? Sir Edward Coke,​ who was born in​ the​ 16th century,​ believed that it​ was based on​ whether or​ not the​ mortgager would pay his debt .​
If the​ person could not pay his debt,​ then the​ land was taken from him,​ and became dead to​ him .​
But if​ the​ person paid off the​ mortgage,​ then the​ mortgage owed became dead to​ him .​
That helps to​ explain how a​ second mortgage home equity loan works .​
One Debt,​ Two Loans
So what's the​ meaning of​ a​ second mortgage home equity loan? This type of​ loan is​ useful in​ restructuring your debt .​
Applying for this loan is​ much simpler than applying for the​ original loan .​
To secure a​ second mortgage home equity loan,​ you​ must have good credit and be capable of​ documenting your income .​
And while zero or​ no-equity loans let you​ borrow a​ maximum of​ 125 percent of​ your home's value,​ be cautious .​
Those loans have interest rates that are higher,​ and have stricter standards for qualifying .​
Two types of​ home equity loans exist .​
a​ home equity loan is​ a​ lump-sum loan that,​ like the​ majority of​ first mortgage loans,​ requires regular payments .​
However,​ the​ closing costs of​ a​ second are lower than those for a​ first mortgage loan .​
The fixed rates for home equity loans are a​ little higher than the​ rates on​ first mortgages.
Hello,​ HELOC
The home equity lines of​ credit,​ or​ HELOC,​ are another type of​ potential second mortgage home equity loan .​
The differences include:
* the​ account can be used as​ long as​ funds are available .​
Think of​ it​ like a​ credit card,​ with a​ balance and an​ available credit line.
* the​ interest rate can change each month .​
So this type of​ second mortgage home equity loan is​ ideal when low interest rates are available,​ but are hazardous after interest rates increase .​
* After a​ future time,​ such as​ 5 to​ 20 years,​ you​ cannot draw against the​ account any longer .​
You will then have to​ make monthly payments on​ the​ loan's principal and interest.

Words can be fun when we know what they mean and where they come from .​
Likewise,​ the​ second mortgage home equity loan can provide several options after you​ have mastered what it​ is.




You Might Also Like:




No comments:

Blog Archive

Powered by Blogger.