Closed End Second Loans

A second mortgage is a loan that is taken out against a home when a mortgage is already on the property. It is called a second mortgage because it is put in second lien position. A second mortgage is commonly referred to as a Home Equity Loan (HELOAN).

No. You are not required to get a second mortgage from the same company that has your first mortgage.

No! A closed-end second mortgage is a mortgage on the equity in your home. You do not have to refinance your current mortgage to take advantage of this program.

The difference between a second mortgage and refinance is that a refinance is going to pay off your current loan in its entirety and give you a new loan with new terms (different interest rate, payments, etc). Utilizing a second mortgage will keep the terms of your first mortgage in place, giving you an additional loan.

A borrower can get the equity out of their home in the form of a second mortgage. Once the loan closes, the borrower will get the funds.

It depends on the value of a person’s home and the amount that they currently owe on their first mortgage.

A borrower will have two separate mortgages. The borrower will have their original mortgage that they used to buy their home and a second mortgage that is based on the equity pulled out of the property.

The borrower will get the funds once the loan closes.

You should consider getting a second mortgage if you are looking to cash out your equity, but have favorable terms on your first mortgage.

There are no restrictions on the way you use the money. It can be used to:

• Pay off higher-interest debt
• Pay for college tuition
• Increase your savings or retirement accounts
• Take care of emergency expenses
• Renovate your home

• Primary residence only
• Loan amounts $100,000 - $500,000
• Maximum combined loan-to-value 80% (1st and 2nd mortgages combined
• Available fixed loan terms of 30, 25, 20 years
• Available in all states except CO, OK, TN, TX