Posted on: 07th Oct, 2005 11:52 pm
how long can a second mortgage loan be held?
Hi,
Some second mortgage loans may extend for as long as 15-20 years but others may require repayment in one year. You need to sit down and discuss the repayment terms with different mortgage companies and select the one that best suits your needs. For example, if you want $25000 for home improvements, you may not want a loan that requires you to pay the entire amount in one or two years because the monthly payment may be too high.
Thanks,
Jerry
Some second mortgage loans may extend for as long as 15-20 years but others may require repayment in one year. You need to sit down and discuss the repayment terms with different mortgage companies and select the one that best suits your needs. For example, if you want $25000 for home improvements, you may not want a loan that requires you to pay the entire amount in one or two years because the monthly payment may be too high.
Thanks,
Jerry
What about the rates in second mortgage. Are they fixed rate long term or short term loans?
Hi Pam
Welcome to the forums.
Second mortgages may have fixed rate and longer repayment periods as in the case of home equity loans. But they can also be adjustable rate mortgages. Second mortgages with adjustable rates are better known home equity lines of credit. These variable rate loans are tied to the prime rate plus a margin having a fixed value throughout the loan period.
The home equity line of credit has at least a lifetime cap which prevents a greater increase in the rates for the entire loan term. Home equity loans on the other hand ensure fixed rates and fixed monthly payments.
Hope you will be benefited from this information.
Thanks,
Samantha.
Welcome to the forums.
Second mortgages may have fixed rate and longer repayment periods as in the case of home equity loans. But they can also be adjustable rate mortgages. Second mortgages with adjustable rates are better known home equity lines of credit. These variable rate loans are tied to the prime rate plus a margin having a fixed value throughout the loan period.
The home equity line of credit has at least a lifetime cap which prevents a greater increase in the rates for the entire loan term. Home equity loans on the other hand ensure fixed rates and fixed monthly payments.
Hope you will be benefited from this information.
Thanks,
Samantha.
