2nd Mortgages, Home Equity Lines

Home equity installment loan A home equity installment loan is a fixed rate loan. That means the interest rate and annual percentage rate (APR) will stay the same for the life of your loan. The product is very similar to an auto loan; you'll make the same monthly payment for the entire loan.

Home equity line of credit (HELOC) A HELOC is variable rate loan. That means the interest rate and annual percentage rate (APR) can move up or down, depending on the index, usually the prime rate, as published in the Wall Street Journal. As you make payments towards your balance, the available credit to spend will increase. Utilize the funds at your convenience.

Tap into your home's equity and use the money:

• to consolidate your debts
• finance your remodeling projects
• pay your children's tuition
• buy a new car or a boat
• or even take your dream vacation
• interest may be deductible (consult your tax advisor about your personal situation)

Some second mortgage loans may extend for as long as 15 or 20 years; others may require repayment in one year. You will need to discuss the repayment terms with the individual mortgage company and select one that offers terms that best suit your needs. For example, if you need to borrow $20,000 to make repairs on your home, you may not want a loan that requires you to repay the entire amount in one or two years because the monthly payments may be too high.

One popular use for Home Equity Loan products is to create what is known as a "Piggy-Back" loan. With this financing structure, an 80% 1st Mortgage and a 10%, 15% or 20% 2nd Mortgage are closed concurrently, eliminating the need for Private Mortgage Insurance (PMI). On an 80/10/10 (10% down), the rate on the 1st mortgage is the same as if you were to put 20% down. On an 80/15/5 (5% down), the rates are slightly higher on both the 1st and 2nd mortgages. On an 80/20 (no money down), the rates are even higher. The 80/10/10 Piggy-Back loan is our most popular financing package for Jumbo purchases.

100% Home Equity Loan: up to 100% of the value of the property (minus first mortgage) with fixed rates and fixed monthly payments. Includes additional options for lower monthly payments or lower interest rates, and potential tax savings. This fixed rate product allows customers to know what the payment will be for the life of the loan.

125% Home Equity Line of Credit: up to 125% of the value of the property (minus first mortgage) with variable rates and the ability to use and reuse the line of credit for the first ten years of the loan. Includes flexible monthly payment options and options for lower monthly payments or lower interest rates.