Types of Second Mortgages
Home equity line of credit
This is primarily a revolving line of credit that
gives you the opportunity to make good use of
the equity in your home. Usually, the percentage
of the appraisal value is what determines the
maximum amount of the credit line. This is
suitable for homeowners who wish to use their
home as collateral for the loan.
Closed-end mortgage
This option requires that you pay a fixed loan
amount over a stipulated time frame. However,
this option is perfect for homeowners who have
a pressing need for a fund to address a
problem.