Second Mortgage
Second Mortgage: A Loan Lovelier the Second Time Around?
Most average Americans are able to buy their own homes through a mortgage. And, while paying off the first mortgage, other needs for money arise for necessities such educational plans for the children, cash for improving the house, money for capitalizing on a small business or money to pay off personal debts. A second mortgage can even be used to pay off the first mortgage. It is typically used for home improvements and renovations just like a second mortgage and it can also be used to finance a business.
A second mortgage is usually based on the equity - your interest, as an owner, on your home based mortgage payments you have paid and the increased value of your home property.
A home equity loan is like the traditional second mortgage but is different in 2 ways. First, unlike a second mortgage, this has lower interest rates and second, lenders can waive off closing costs. Most types of this loan being offered are adjustable in the market. The loan amount is usually seventy five to eighty percent of the home's appraised value and the interest is adjustable.
This article submitted by Bob Farley, owner and publisher of the Home Equity site at http://www.farleyco61.com/
About the Author
My name is Bob Farley, owner and publisher of http://www.farleyco61.com a site giving many ideas on how to take advantage of your Home Equity.
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