Donna S asked:
My husband and I have two mortgages (an 80% and a 10%). Our banker uses the term for the “second mortgage” interchangeably with a “home equity loan”. Is it possible for us to take out a home equity line of credit at the same time we are paying the second mortgage?
Ruben
My husband and I have two mortgages (an 80% and a 10%). Our banker uses the term for the “second mortgage” interchangeably with a “home equity loan”. Is it possible for us to take out a home equity line of credit at the same time we are paying the second mortgage?
Ruben
If you can find a lender. It’d be a 3rd mortgage.
They are the same thing, as you said. It depends on how much equity you actually have in your home. Instead of opening another line of credit, if your equity allows for it, you can probably get an increase in your existing line of credit.
Some banks allow you to borrow up to 100% of your equity, but be careful, In this market, you might easily end up owing more than your house is worth.
If you are a first time borrower of a home equity loan it is imperative that you have a checklist of essential questions that you need to ask each and every lender. The answers to these questions will provide a valuable reference to base your comparisons on. What’s the interest rate? Knowing this is crucial. The interest rate will determinepercentage by which the adjustable rate will change. What is the Annual Percentage Rate or APR? The APR on the home equity loan will determine the yearly payment you will need to make towards this.The higher the payment in terms of points, the lower is the interest rate.