A home equity loan is often taken out in the form of a second mortgagebine this with the financing you will need for your second home, and its likely you will end up with three mortgages for only two properties.
Although this is important to remember, its not necessarily a deal breaker, as its no worse than having two mortgages and another loan which would likely have higher interest rates.
Pros Of A Second Mortgage
- Second mortgages can mean high loan amounts. Some lenders allow you to take up to 90% of your homes equity in a second mortgage. This means that you can borrow more money with a second mortgage than with other types of loans, especially if youve been making payments on your loan for a long time.
- Second mortgages have lower interest rates than credit cards. Second mortgages are considered secured debt, which means that they have collateral behind them . Continue reading “Can I Combine My Mortgage And Home Equity Loan”