A Second Mortgage_ Vs. A Home Equity Loan

by Jay Moncliff

Second Mortgage

Tip #1 One Time Expenses. A second mortgage_ is the preferred option if you have a one time big expense you need to cover. Examples of this include remodeling your kitchen, paying for a wedding, or buying a new car. In these instances a second mortgage_ will probably work best for you; however this will depend on the equity in your home and your credit score.Second Mortgage_

Tip #2 Recurring Expenses. If you are going to have recurring expenses then you might not want a second mortgage_ because a home equity loan will work out better for you. The second mortgage_ is best for large amounts of money at once while recurring expenses like tuition are better paid for with a home equity line of credit.Second Mortgage

Tip #3 Repayment. You will also need to consider your ability to repay and which option will suit you best. A second mortgage_ can be financed similarly to your first mortgage, while the home equity loan can be paid back more like a credit card. Consider your financial position and ability to make monthly payments before applying for either a second mortgage_ or a home equity loan.If you still don’t know whether a second mortgage_ or home equity line of credit is for you, then talk with your lender and see what is recommended for your equity, credit, and ability to repay the loan.

Jay Moncliff is the founder of ” href=”http://www.new-mortgage-center.info” target=_blank>www.new-mortgage-center.info a website specialized on Mortgage Refinancing, resources and articles. This site provides updated information on Mortgage. For more info visit his site: Mortgage Company

second mortgage_