What Is A Second Mortgage?

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 put a lien on your house. This lien will be recorded in 2nd place 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 programme terms will change from lender to lender so it is of import to shop around and compare before committing to any 1 offer.

Loan return from a second mortgage loan can be used for just about anything. Many consumers take out 2nd mortgage loans to consolidate debt, make home improvements or pay for their children college education. Whatever you do up one's mind to make with your loan return it is of import to retrieve that if you default on your payment you can lose your home so you will desire to make certain 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 state of affairs but in most cases the interest is 100% fully deductible as long as the concerted loan to value of your 1st and 2nd mortgage make not transcend the value of your home.

For more than information on second mortgage loans, or to compare rates and programs of second mortgage loan lenders visit http://www.equityloansource.com