Here's an up-to-date report of mortgage loan home equity refinance mortgage loans

2nd Mortgage or Home Equity Loan

Homeowners often group 2nd mortgages and home equity loans into the same category. While 2nd mortgages are a type of home equity loan, other equity options also fall under home equity loans. For example, when choosing a home equity loan, homeowners may opt for a home equity line of credit (HELOC). If deciding to tap into their equity, homeowners must choose the best option, a 2nd mortgage or home equity loan.

What are 2nd Mortgages?

When opting for a 2nd mortgage, homeowners receive a fixed amount of money. Similar to the initial mortgage, a 2nd mortgage has a fixed repayment period. Sometimes, 2nd mortgages are confused with mortgage refinancing; however, the two processes are very different. A refinancing creates a new home loan to replace the old, whereas a 2nd mortgage creates a second lien on the property.

Homeowners have the option of selecting a 2nd mortgage with a 15 or 30 year term. The majority of 2nd mortgages have fixed rates. Yet, it is possible to obtain a second mortgage with a variable or adjustable rate.

Before applying for a 2nd mortgage, bear in mind that these mortgages tend to have a slightly higher rate than 1st mortgages. Similarly, rates are determined by an applicant's credit history.

What is a Home Equity Loan?

Home equity lines of credits are not loans. Moreover, homeowners do not obtain a fixed sum in one lump payment. Instead, these credit accounts consist of an open line of credit. This is comparable to a credit card. In fact, debit or credit cards are often used to withdraw funds from a home equity line of credit.

The credit limit on a home equity line of credit is based on the appraised value of your property. Usually, lenders will not approve a line of credit for the full appraisal value. Rather, homeowners with a good credit history may be able to obtain a revolving credit for up to 75% of the home's worth.

Home equity lines of credit benefit homeowners who want the freedom of withdrawing funds on an as needed basis. On the other hand, second mortgages are generally more suited for individuals who require a one-time lump sum of money.

Go to http://www.homeequitywise.com for more information about Second Mortgages and Home Equity Loans.

More Useful Resource and Updates on mortgage loan home equity refinance mortgage loans

• Aussie cuts home loan rate again (Herald Sun)
  NON-bank lender Aussie Home Loans has dropped its standard variable mortgage interest rate by a further 40 basis points.



• Plan before interest-only loan adjusts (Bankrate.com via Yahoo! Finance)
  It's important to study all options before the terms change on your interest-only mortgage.



• Mortgage applications rise as interest rates drop: MBA (Reuters via Yahoo! News)
  U.S. mortgage applications rose last week, recovering from an almost 8-year low, as potential borrowers took advantage of a sharp drop in interest rates, an industry group said on Thursday.



• U.S. to simplify mortgage disclosure rules (USA Today)
  Prospective home buyers would get a simpler way to understand often-confusing mortgage terms under new rules by the federal government.



• (AFX UK Focus) 2008-11-13 12:15 US mortgage applications rise as interest rates drop-MBA (Interactive Investor)
  NEW YORK, Nov 13 (Reuters) - U.S. mortgage applications rose last week, recovering from an almost 8-year low, as potential borrowers took advantage of a sharp drop in interest rates, an industry group said on Thursday. The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, for the week ended Nov. 7 increased ...



• Banks cut down interest rates on home loan (Central Chronicle)
  The public sector banks have announced to cut down the interest rate on major loans by 50 to 75 basis points (0.50-0.75%). The banks announced it after concluding the meeting of the heads of the banks with Union Finance Minister P Chidambaram, who assured the bank chiefs to take some measurable steps to help banks in reducing bad loans on their books.



• Mortgage Questions Answered (The Tampa Tribune)
  Can a restructured mortgage include an interest rate reduction? Yes - to lower monthly payments, a lender might decrease the mortgage interest rate either permanently or temporarily.



• How Does Interest Rate Cuts Affect Consumers? (Investopedia via Yahoo! Finance)
  Traders rejoice when the Fed drops the rate, but is it good news for all? Find out here.

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• GMAC Mortgage
  With information on refinancing, reverse mortgages and first time home buying.