Second Mortgage Resources and Information
Your Complete Second Mortgage Guide
Forty years ago, a second mortgage was something people only whispered about. Today, a second mortgage, now called a home equity loan or home equity line of credit, is a powerful financial tool. With it, you can pay for college, home repairs, or a major home remodel. Home equity can also be tapped to consolidate other high-interest debts so you can improve your financial future.
If you’re considering taking out a home equity loan, our complete guide to second mortgages while help you understand the terminology and loan process, determine your potential interest rate, and calculate your potential costs and savings. You can simplify the loan process by using the Bills.com Savings Center to apply for a loan from our family of lenders.
Bill's Expert Advice
Success Stories
Read a personal story about refinancing a second mortgage and and learn what's involved.
success story
FAQs
- Can I get a second mortgage from any lender?
Your current lender may be able to offer you more favorable terms on your loan with fewer costs. If they can’t, you can apply for a home equity loan or line of credit with any lender you choose. When shopping for lenders, check the Better Business Bureau to confirm that they are reputable. - How do I leverage my equity?
“Leveraging your equity” is a term lenders use to convince you to borrow against your home. Equity is not wasted if you don’t use it and should only be used to improve your home, financial future, or your child’s future. It should never be used to invest in the stock market or buy big-ticket consumer goods. You should never borrow more than 80% of the current value when all your loans are combined. - What happens if I default on a home equity loan?
Your second lender can take your home if you default. Proceeds from the foreclosure sale will first go to your primary lender. Your second lender will be paid with whatever proceeds remain after your first mortgage is paid off
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Glossary of Terms
Balloon Mortgage: A mortgage with low, evenly spaced payments followed by a single, large payment at the end.
Home Equity Loan: A lump sum loan with a fixed interest rate and fixed repayment period. The loan borrows against the difference between your remaining first mortgage balance and your home’s current market value.
Home Equity Line of Credit (HELOC): A line of credit backed by the equity in your home. You can borrow smaller sums of money whenever you need them and pay them back over time. A HELOC has an expiration date, a maximum limit, and a variable interest rate.
Good Faith Estimate: The Truth-in-Lending Act requires lenders to give you a good faith estimate of all loan fees and costs. At closing, fees that different substantially or new fees not included in the estimate should be satisfactorily explained.
Streamlined Loan: A faster, simpler, lower-cost home refinance or home equity loan. These loans are usually offered by your current lender in order to keep your business.
Average Mortgage Rates
| program | apr |
|---|---|
| 30 Yr Fixed | 6.71% |
| 15 Yr Fixed | 6.23% |
| 30 Yr Fixed Jumbo | 7.69% |
| 15 Yr Fixed Jumbo | 7.26% |
| 3/1 ARM | 6.02% |
| 5/1 ARM | 6.13% |
| 7/1 ARM | 6.49% |
| 10/1 ARM | 6.82% |
| 3/1 ARM (I/O) | 6.03% |
| 5/1 ARM (I/O) | 6.27% |
| 7/1 ARM (I/O) | 6.48% |
Articles and Advice
Types of Second Mortgage Loans
Learn the difference between a home equity loan and a home equity line of credit. This introduction also explains the best uses for these loans and your legal rights if you change your mind.
Second Mortgage Loan
Your Second Mortgage Refinancing Options
You have three options for refinancing your first and second mortgages. Read more to learn about each option and which one is best for you.
Refinance Second Mortgage
How to Qualify for a Low Rate Home Equity Loan
Follow these simple steps to make sure your credit is clean and you have everything you need to make your home equity loan process quick, easy, and affordable.
Low Rate Second Mortgage
Bad Credit? A Home Equity Loan May Help Improve It
Although it seems strange to take on more debt to improve a bad credit history, a home equity loan may be the solution to your financial problems. Learn when you should consider a loan, and when to look for other options.
Bad Credit and Second Mortgages
Mortgage Scams to Watch Out For
Predatory lenders are more interested in taking your money than helping you find the right loan. Discover several common mortgage scams and what to do if you suspect you’ve been scammed.
Second Mortgage Home Loan Scams
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