Second Mortgages

There are two ways to take out a second home mortgage: the first is to obtain another traditional Home Equity Loan; the second is to take out a Home Equity Line Of Credit (HELOC). Both types of loan are secured by your home’s value (that is why they are both called a “second mortgage”) and in both cases lenders assess your property to determine how much they are willing to extend. The amount is determined by taking the assessed value and multiplying by a percentage figure, known as the loan-to-value ratio. Traditionally this can be as high as 80%.

With a Home Equity loan you borrow a fixed amount of money with a fixed interest rate; monthly payments are also fixed and are calculated to cover interest and repay the loan balance over the loan term (i.e. it is self-amortizing). This type of loan works best when you know exactly how much money you need to borrow e.g. if you are making home improvements where costs are known in advance, or are using the loan for debt consolidation.

A HELOC is more flexible because you can borrow up to the line of credit, pay the balance down and borrow the money again over the term of the loan agreement. It usually has a variable interest rate and is not self-amortizing, so if you only make the minimum monthly payments you could find yourself left with a large chunk to pay at the end. It is most useful where you do not know in advance how much you need to borrow, since its flexibility means that you can access money repeatedly and in varying amounts, as needed.

Full Spectrum Lending helps homeowners - even those with less-than-perfect credit – access their home’s equity to get cash, consolidate debts, and lower monthly expenses. We can also help applicants who are self-employed or have high consumer debt. In fact, we’re proud to say that 4 out of 5 Full Spectrum Lending applicants are approved for a loan! We offer competitively priced home loan programs, including fixed rate, adjustable rate, refinance and home equity loans.

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Countrywide Home Loans helps homeowners - even those with less-than-perfect credit – access their home’s equity to get cash, consolidate debts, and lower monthly expenses. We can also help applicants who are self-employed or have high consumer debt. In fact, we’re proud to say that 4 out of 5 Countrywide Home Loans applicants are approved for a loan! We offer competitively priced home loan programs, including fixed rate, adjustable rate, refinance and home equity loans.

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