Second Mortgage Loans & HELOCs

Turn Your Home Equity Into Opportunity

If you’ve built equity in your home, you may be able to use it to fund renovations, consolidate debt, cover major expenses, or invest in new opportunities. Two of the most common ways to access your equity are Second Mortgage Loans and Home Equity Lines of Credit (HELOCs).

While both options allow you to borrow against your home’s value, they work differently — and choosing the right one depends on your financial goals.

Second Mortgage

A second mortgage (also called a home equity loan) is a lump-sum loan that is taken out in addition to your existing mortgage.

Key Features:

• Fixed interest rate
• Fixed monthly payments
• Set repayment term
• Receive funds all at once

Because the rate and payment are typically fixed, second mortgages are ideal for homeowners who:

• Know exactly how much money they need
• Prefer predictable monthly payments
• Want stability in their budgeting

Common uses include:

• Home renovations or remodeling
• Debt consolidation
• Large medical or education expenses

HELOC

A Home Equity Line of Credit (HELOC) works more like a credit card. Instead of receiving a lump sum, you’re approved for a credit line that you can draw from as needed.

Key Features:

• Revolving line of credit
• Typically variable interest rate
• Borrow only what you use
• Interest-only payment options during the draw period

HELOCs are often a great fit for homeowners who:

• Need flexibility
• Have ongoing or phased expenses
• Want access to funds over time

Common uses include:

• Ongoing renovation projects
• Emergency funds
• Investment opportunities
• Business startup costs