Benefits of a Second Mortgage
If you have sufficient equity in your home, you may qualify for a second mortgage, either a Home Equity Loan (HEL) or a Home Equity Line of Credit (HELOC).
HELs and HELOCs are best for consolidating high-interest debt and paying for renovations that increase your home’s value.
The equity in your home is an important asset and understanding how to use it is an important. For help determining your options, set up a free, risk-free consultation with a Mortgage Hub Consultant.
HELOC vs. Home Equity Loan
A home equity loan is structured like a traditional mortgage—you receive money upfront and pay it back with interest over time. A HELOC is a line of credit, meaning you’re approved to borrow up to a limit and you pay interest on what you borrow
Generally, home equity loans give you access to larger amounts than a HELOC. But a HELOC has the advantage of flexibility; you pay interest only on what you borrow. This makes a HELOC ideal for borrowers who don’t know how much money they need.
Eligibility and Qualification Guidelines
|Home Equity Line of Credit||Home Equity Loan|
We’re here to help. So if you’re not sure if this type of loan is right for you, call us at (888) 273-8734 or schedule a free consultation.