second mortgage advice
A second mortgage is a loan that is secured by the equity
in your home. When you obtain a second mortgage loan the lender will place a
lien on your house. This lien will be recorded in 2nd position after your
primary or 1st mortgage lender's lien, hence the term second mortgage.
A second mortgage is also sometimes referred to as a home
equity loan. There is no difference between a home equity loan and a second
mortgage. These are just two different terms for the same subject.
A second mortgage can either be a fixed-rate loan or an adjustable-rate
credit line. Interest rates and loan program terms will vary from lender to
lender so it is important to shop around and compare before committing to
any one offer.
Loan proceeds from a second mortgage loan can be used for just about
anything. Many consumers take out 2nd mortgage loans to consolidate debt, do
home improvements or pay for their kids college education. Whatever you
decide to do with your loan proceeds it is important to remember that if you
default on your payment you can lose your home so you will want to make sure
that you are taking the loan out for a worthwhile purpose.
Another plus of a second mortgage loan is that the interest you pay back
on the loan may be tax deductible. Consult your tax advisor regarding your
personal situation but in most cases the interest is 100% fully deductible
as long as the combined loan to value of your 1st and 2nd mortgage do not
exceed the value of your home.
For more information on second mortgage loans, or to compare rates and
programs of second mortgage loan lenders visit
http://www.equityloansource.com
Levetta Rivera is a successful author and publisher of
http://www.equityloansource.com . An informational and resource site for
home equity loans.
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