What are the pro and cons of a 2nd mortgage VS a home equity loan? Which is better?

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4 Comments
  1. Reply
    ~Susakins~
    April 29, 2011 at 11:16 pm

    I heard that most all people go into more debt when you get a home equity loan…

  2. Reply
    BriarKat
    April 29, 2011 at 11:28 pm

    They are the pretty much the same thing. They are both a secured loan with your home as collateral.

  3. Reply
    Ruby
    April 30, 2011 at 12:19 am

    They are exactly the same. The minute you sign papers and take out a “home equity loan” your house is being used as collateral and you actually have a 2nd mortgage on it, even if you have not borrowed a penny. That is why some people have problems when they have the open credit line, not realizing that they now have a 2nd mortgage.

  4. Reply
    Dania
    April 30, 2011 at 1:14 am

    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.

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