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Second Mortgages are for home owners who have equity in their home or new home buyers who takes out two mortgages to cover the home price e.g. 80/20 mortgage rule. If you borrow money from two different lenders against your home in the form of HELOC, Home Equity Loan then it is also called a second mortgage. Many home owners use this loan for home repairs and upgrades. In most cases second mortgage is tax deductable. |
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A home equity line of credit and home equity loans are like a second mortgage and an easy way to consolidate high interest credit card or personal loan debt. The key to success is getting the rate lower than your existing interest rate on your credit cards. HELOC and home equity loan helps home owners to pay to one lender. In many cases if you open HELOC on your primary residence then its tax deductable like first mortgage. |