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Second Mortgages
Second mortgages are any mortgage that is obtained after an
existing first mortgage. What determines if a mortgage loan is a first or second
mortgage is the
date the loan is recorded against the property. The oldest loan (first one recorded) is
the first mortgage, then any loan recorded after is a second mortgage, third, etc. In most cases, a
home equity loan or home equity credit line are "second mortgages".
Available Terms of Second Mortgages
We offer all types of second mortgages. Below is a list of the
available terms and types of second mortgage loans. All of these loans can be used as
refinance mortgage of existing second mortgages.
- Home Equity Loans -
Fixed Rates
- 10 year fixed rate home equity loan.
- 15 year fixed rate home equity loan.
- 20 year fixed rate home equity loan.
- 30/15 year fixed rate home equity loan.
Basic Terms of Second Mortgage Loans
Below is some of the common features of both types of
fixed rate home equity loan programs.
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Loan Amount Range: |
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Maximum Combined LTV
(click here to determine your LTV) |
- up to 125% for primary residence.
- up to 80% for second home.
- up to 70% for investment property.
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| Receiving of Funds: |
- Received all at closing of loan for fixed rate home equity loans
- May take draws from available home equity credit line limits
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| Interest Rate: |
- Fixed for entire term of loan on the home equity loan
- Variable for home equity credit line
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Advantages & Disadvantages of a Second
Mortgage
A second mortgage's key advantage is that they provide you the
ability to access your homes equity without having to refinance the entire first mortgage.
This is important if you do not need a large amount of proceeds or if you have a low
interest rate on your existing mortgage.
The down side of having a second mortgage if that it may limit your
ability to refinance your first mortgage in the future and it more of your equity is
leveraged.
What Type of Second Mortgage Loan Should You
Apply For?
When you apply for a second mortgage home equity loan, our loan
officers will assist you in determining the loan that best suits you needs. Below is some
common scenario's that may help you initially get an idea of what type of loan will be
best for you:
If you know exactly how much funds you need, you plan on living in
the home for longer than 5 years, and enjoy the stability of fixed rate mortgage payment
than a fixed rate second mortgage home equity loan would be your best bet.
Get Your Free Home Equity Loan Approval.
If you need funds from time to time or you do not need all of the
funds at the time of closing, and you are comfortable with a variable rate mortgage then a
second mortgage home equity credit line.
Get Your Free Home Equity Loan Approval.
Now that you understand the basic details of a fixed
rate home equity loan, take a moment to get pre-approved using our secure online home equity loan application and get
your answer within 90 seconds.
 Apply Now For Your Home Equity Loan Online
If you are not sure if a fixed rate home equity loan
best suits your needs, you may wish to review the information on the following types of
home equity loans:
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