Allentown Mortgage Corp’s second mortgage programs are designed to fit your specific lending needs. Learn more about second mortgage terms, rates and expenses before you apply by reviewing the second mortgage information below.
Home Equity Credit Line
Using a credit line to borrow against the equity in your home has become a popular source of consumer credit due to its tax advantages and the home owners’ ability to acquire large amounts of cash at relatively low interest rates. The funds that you receive from a home equity credit line can be used to fund anything from home improvements to a child’s school tuition. Home equity credit lines may be risky since the lender will require the homeowner’s property as collateral for the loan.
Second Mortgage Terms
Second mortgage repayment terms vary depending on the homeowners’ circumstances and the amount of time required prior to repayment. Because it is difficult for borrowers to repay such a large loan in a short period of time, many opt to repay their loan over several years.
The Expense of a Second Mortgage
When taking out a home equity line of credit, you pay for many of the same expenses as you paid for when you financed your original mortgage, which include items such as an application fee, appraisal and a point (percentage of the amount you borrow). In addition to upfront closing costs, some lenders require you to pay continuing fees throughout the life of the loan, which may include an annual membership or participation fee.
Second Mortgage Rates
The two most common types of interest rates available for the home equity plan are adjustable rates and fixed rates. Adjustable rates may offer lower monthly payments at first, but during the rest of the repayment period the payments may change and possibly increase. On the other hand, fixed rates offer slightly higher initial rates and stable monthly payments over the life of the credit line.
Determine Your Monthly Payment
It is the homeowners responsibility to determine monthly payments before taking out a second mortgage or equity line of credit. Mortgage lenders may help calculate your monthly payments, but are not required to determine your precise monthly payment on a home equity credit line because it varies month-to-month.
Contact Allentown Mortgage Corp to discuss your best second mortgage loan options by calling .