| Second Mortgage Home Loan is given on the basis of | | | | mortgage loan is the new loan other then the loan you |
| the equity of your home. First of all you must | | | | already owe to the lender. You have to deposit an |
| understand what is the equity of home? Equity is the | | | | additional monthly installment for this loan. Therefore |
| value of your home minus the loans you owe. Hence, | | | | you must calculate before applying for this loan that |
| you get amount for this loan on the basis of the equity | | | | whether your pocket allows or not. |
| of your home. Most of the times, this loan is used to | | | | There is no such rule that you have to borrow this loan |
| consolidate the debts of high interest rates like credit | | | | from same lender rather you can get this loan at |
| card other then this, this loan is used for home | | | | competitive rate with other lenders. Duration of this |
| renovations, improving property, raising funds, starting a | | | | loan depends on the repayment term. If, you want to |
| new business, or buying a new property etc. | | | | get rid of the loan early, then you must pay heavy |
| Second Mortgage Home Loan should not be confused | | | | monthly installments and small installments for long |
| with mortgage refinancing because these are two | | | | duration which may be 15 to 20 years. Interest rate for |
| different loans. Mortgage refinancing is the | | | | this loan may be higher than your first mortgage but it |
| replacement of old loan for new one at new conditions | | | | is lower than unsecured loans. |
| like interest rate and duration etc. But second | | | | |