2nd Mortgages

A second mortgage is a loan taken out against the equity of your home, in addition to your primary mortgage. It allows homeowners to borrow money based on the difference between their home’s current market value and the balance owed on the first mortgage. Second mortgages can come in two forms: home equity loans, which provide a lump sum of money, and home equity lines of credit (HELOCs), which offer a revolving credit line. This type of loan is typically used for home improvements, debt consolidation, or other major expenses. Since it is secured by your home, interest rates are generally lower than unsecured loans, but it carries the risk of foreclosure if you fail to repay.