Home Equity Loans in NY

Home Equity LoansA home equity line of credit is a form of revolving credit in which your home serves as collateral. If you need to borrow money, home equity lines may be one useful source of credit. Initially, they may provide you with large amounts of cash at relatively low interest rates, allow for certain tax advantages and offer you the flexibility of taking cash when you need it. (Check with your tax advisor for details.)

In determining your actual credit limit, a lender will consider your ability to repay the loan (principal and interest) by looking at your income, debts, and other financial obligations as well as your credit history.

Second Mortgage Info

A second mortgage typically refers to a secured loan (or mortgage) that is subordinate to another loan against the same property.

In real estate, a property can have multiple loans or liens against it. The loan which is registered with county or city registry first is called the first mortgage or first position trust deed. The lien registered second is called the second mortgage. Second mortgages are called subordinate because, if the loan goes into default, the first mortgage gets paid off first before the second mortgage. Thus, second mortgages are riskier for lenders and generally come with a higher interest rate than first mortgages.

In some cases, a second mortgage takes the form of a home equity loan, as described above. . The difference in terminology is that a mortgage traditionally refers to the legal lien instrument, rather than the debt itself. The term length of a second mortgage varies. Terms can last up to 30 years on second mortgages; however repayment may be required in as little as one year depending on the loan structure.

Generally, when considering the application for a second mortgage, lenders will look for the same qualifications as a 1st mortgage, such as your ability to repay the loan (principal and interest) by looking at your income, debts, and other financial obligations as well as your credit history.