How Do Second Mortgages and Mortgage Refinancing Compare

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How Do Second Mortgages and Mortgage Refinancing Compare?

The short answer relates to the borrower's primary concern: accessing equity or reducing a mortgage's monthly payments or interest.

If it's the latter, then there's no question that refinancing has a clear advantage.

But, if accessing equity is the goal, the question then becomes a matter of the different advantages between a second mortgage and cash-out refinancing.

This returns the borrower to the same criteria that apply to comparing home equity loans and home equity lines of credit:

flexibility
how much money is needed
when the money is needed
closing costs and annual fees
budgeting monthly payments
financial discipline
length of loan period

It is recommended that potential borrowers further explore the advantages of a home equity loan and the advantages of a home equity line of credit.

Next: Would you like to experiment with a home equity calculator or to be matched with up to five home equity and second mortgage lenders?

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