A couple outside looking at their new home

A couple outside looking at their new home

Home Financing Library

Second Mortgages

Home Equity Loans or Lines of Credit

If you need to borrow money, home equity loans or lines of credit may be one useful source of credit. Initially at least, they may provide you with cash at relatively low interest rates and they may provide you with certain tax advantages unavailable with other kinds of loans.

Length of Your Home Equity Loan or Line of Credit

Some home equity loans or lines of credit may extend for as long as 15 or 20 years; others may require repayment in one year.

Home Equity Loan or Line of Credit Payments

Be sure you understand how much your monthly payments will be and what they cover.

Home Equity Rates

If you have a fixed rate loan, the interest rate is set for the life of the loan. However, many lenders offer variable rate mortgages, also known as adjustable rate mortgages or ARMs.