We offer both home equity lines of credit and fixed 2nd mortgage loans. Let us first explain the difference:

Home Equity Line of Credit: A home equity line of credit is a 2nd mortgage loan secured by your property. This loan has a variable rate based on the prime rate and typically will require only interest payments for the first 10 years. This type of loan functions much like a credit card in that you have a credit limit you can draw against and your monthly payments adjust up or down based on how much you owe. A home equity loan is desirable because they have low minimum payments, low interest rates compared to fixed 2nds, and they offer you the flexibility to draw money at a later time (i.e. finish a basement next spring). Because you only pay based on what you owe, you can take out the loan and not make any payments on any portion that you do not use until it is needed.

Fixed 2nd Mortgage: A fixed 2nd mortgage is virtually the same as a fixed 1st mortgage in that it offers the security of a fixed interest rate. Interest rates on fixed 2nd mortgages are typically higher than on a home equity line of credit; however, your rate is locked in for the life of your loan. Your monthly payment is based on the original amount you borrow, interest rate, and term. This minimum monthly payment will remain the same until the loan has been paid off.

Whether you are looking for a home equity line of credit or a fixed 2nd mortgage, we can help. Using the equity in your home can help you pay off debt, get cash for home improvements, even jumpstart your retirement savings. We can help you determine whether a home equity line of credit or a fixed 2nd mortgage makes more sense for you.