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July 11, 2006
Fixed Rate Home Equity Loan Versus Adjustable HELOC: Comparing 2nd Mortgage
Many people think of a second mortgage as a fixed interest, lump sum loan. However, that is only one form of a second mortgage. A second mortgage is actually ANY secondary lien on your home--secured loan with your home pledged as collateral. Second mortgages are typically categorized as fixed mortgage rate home equity installment loans (HELs), also known as home equity loans, and home equity lines of credit (HELOCs) which are adjustable rate mortgages. The Federal Reserve states that the home equity line of credit annual percentage rate (APR) is a variable rate loan based solely on a publicly available index (such as the prime rate published in the Wall Street Journal or a U.S. Treasury bill
From Fixed Rate Home Equity Loan Versus Adjustable HELOC: Comparing 2nd Mortgage
Posted by Gary at July 11, 2006 02:40 PM
