Home Equity

Home equity loans are also known as fixed rate second mortgages. There are also home equity lines of credit or HELOC.

HELOC's are very similar to how credit cards work with the exception that the interest is tax deductible, where your credit card interest is not. Another similar attribute of a HELOC is when you pay down your principle balance, you can borrow from the HELOC again!

Most HELOC monthly payments are interst only payments. Which means you are only paying the interest due to the lender.

Fixed rate second mortgages are fully amortized, which means a certain portion of your payment goes to principle and interest every month. Second mortgages will be completely paid in full at the end of the loan term. Most popular terms for a second mortgage are 15 year fixed, however, 30 year terms are available.