| Life is 'plum full' of misunderstandings and confusion | | | | This type, has a revolving line of credit that is usually |
| about terminologies associated with important subject | | | | more in terms of fees, but less costly in terms of rates |
| matter such as borrowing. Much like the seemingly | | | | you pay. The second mortgage is somewhat opposite, |
| confounding aspects of the home equity loan vs. | | | | in that it is higher in rates, but lower in fees associated |
| second mortgage. A vast percentage of people still | | | | with it. |
| don't understand the differences of the two; or merely | | | | There is no doubt that people confuse both and |
| associate both as being virtually the same, but with | | | | commingle the two together for ease in understanding |
| different names. | | | | the two. However, they are somewhat autonomous |
| For the purposes of setting the record straight, a real | | | | from each other, and provide a much different service |
| and true second mortgage, is a fixed rate of fifteen to | | | | overall when examined properly! |
| thirty years in duration. Your credit is the basis at which | | | | In addition, the HELOC even allows for a credit card |
| the bank determines your terms, rate, and whether | | | | that can be used to at your discretion, provided the |
| you will be paying points to obtain it. | | | | bank dispenses you one at the time of closing. |
| Furthermore, the true definition of a second mortgage | | | | Moreover, the line of credit can have fluctuating rates |
| is best noted as a style or type of home equity loan | | | | from the outset or even after a period of time has |
| rather than the exact same. On the other hand, a | | | | passed. Although, you can lock in a fixed rate with this |
| home equity line of credit (HELOC), is what most | | | | style but must keep that in mind before closing the |
| lenders would describe a mere home equity loan. In | | | | deal. |
| essence, if you are proposed a HELOC, it is more than | | | | Take advantage of these ever popular loan products |
| likely, a primary home equity loan. | | | | in this time of low rates and favorable terms overall! |