Change Font Size:

Home Equity Loan

A home equity loan is a loan secured by a mortgage on your home and can be a 1st mortgage lien if you have no othe mortgage on the property.  It is commonly used in second lien position (a second mortgage) whenever their is a "first" mortgage already on the home.

A home equity loan is also known as a "home equity line of credit" where you can draw money whenever needed and your payments are based on your outstanding balance.

A second Mortgage is a loan taken in a lump sum at closing and payments are based on the full amount of the loan in addition to the first mortgage.