| ELITE MORTGAGE SERVICES, INC. |
| SECOND MORTGAGES |
| CONTACT US NOW Phone: (239) 354-0058 Fax: (888) 607-4420 info@elitemortgageservicesinc. com |
Home Equity Credit Line
There are many options for home owners who wish to meet growing financial demands; one way to improve your
financial situation is to borrow money is through a home equity line of credit. This source of credit can provide certain
tax advantages and generally allows you to borrow large sums of money at affordable rates. This line of credit uses
your house as collateral though, which means such a credit line can be risky if you default on the monthly mortgage
payments. The funds that you receive from a home equity credit line can be used to fund anything from home
improvements to a child's school tuition.
Second Mortgage Terms
Mortgage lenders offer several different terms for second mortgages. The repayment terms for your second mortgage
will depend on your individual circumstances and will depend on the amount of time you will require prior to repayment.
It is often difficult for borrowers to repay a large loan in a short period of time. For this reason it is best to choose a
second mortgage on your home that does not require repayment after only couple of years.
The Expense of a Second Mortgage
Borrowing money for a second mortgage can be costly because the price of a loan is, in most cases, equal to a
percentage of the loan amount. Most mortgage lenders charge a fee for lending money and this fee is based on a
point system. One point is equal to one percent of the loan amount. Laws in some states place a cap on the amount of
money that can be charged for a second mortgage and this will help keep the cost of your second mortgage down.
Second Mortgage Rates
The two most common types of interest rates that can be linked to your second mortgage are adjustable rates and
fixed rates. Adjustable rate mortgages allow the interest rate to fluctuate during the life of the home loan. Fixed rate
mortgages, on the other hand, maintain the same interest rate for the life of the loan. Both fixed and adjustable rate
mortgages have their strengths and weaknesses. In today's unstable economy, adjustable rate mortgages can be
risky for the homeowner because the rate can increase with little notice. On the other hand, this type of mortgage may
allow you to purchase a more expensive home.
Determine Your Monthly Payment
As a home owner it is important to determine what your monthly payment will be when you take out a second mortgage
or home equity line of credit. When the monthly payments are calculated you will have a better idea of your ability to
pay for the loan. Mortgage lenders are not required to determine your precise monthly payment on a home equity
credit line because it will vary month to month but will instruct you about how the payments are calculated on a monthly
basis.
We are available to help you every step of the way. Just call us at (239) 354-0058, fax at (239) 354-0046 or e-mail us
at info@elitemortgageservicesinc.com
Loan Application
Credit Release Form
If you receive an error message when trying to download either of the above forms, you might need to first download
the acrobat reader.
There are many options for home owners who wish to meet growing financial demands; one way to improve your
financial situation is to borrow money is through a home equity line of credit. This source of credit can provide certain
tax advantages and generally allows you to borrow large sums of money at affordable rates. This line of credit uses
your house as collateral though, which means such a credit line can be risky if you default on the monthly mortgage
payments. The funds that you receive from a home equity credit line can be used to fund anything from home
improvements to a child's school tuition.
Second Mortgage Terms
Mortgage lenders offer several different terms for second mortgages. The repayment terms for your second mortgage
will depend on your individual circumstances and will depend on the amount of time you will require prior to repayment.
It is often difficult for borrowers to repay a large loan in a short period of time. For this reason it is best to choose a
second mortgage on your home that does not require repayment after only couple of years.
The Expense of a Second Mortgage
Borrowing money for a second mortgage can be costly because the price of a loan is, in most cases, equal to a
percentage of the loan amount. Most mortgage lenders charge a fee for lending money and this fee is based on a
point system. One point is equal to one percent of the loan amount. Laws in some states place a cap on the amount of
money that can be charged for a second mortgage and this will help keep the cost of your second mortgage down.
Second Mortgage Rates
The two most common types of interest rates that can be linked to your second mortgage are adjustable rates and
fixed rates. Adjustable rate mortgages allow the interest rate to fluctuate during the life of the home loan. Fixed rate
mortgages, on the other hand, maintain the same interest rate for the life of the loan. Both fixed and adjustable rate
mortgages have their strengths and weaknesses. In today's unstable economy, adjustable rate mortgages can be
risky for the homeowner because the rate can increase with little notice. On the other hand, this type of mortgage may
allow you to purchase a more expensive home.
Determine Your Monthly Payment
As a home owner it is important to determine what your monthly payment will be when you take out a second mortgage
or home equity line of credit. When the monthly payments are calculated you will have a better idea of your ability to
pay for the loan. Mortgage lenders are not required to determine your precise monthly payment on a home equity
credit line because it will vary month to month but will instruct you about how the payments are calculated on a monthly
basis.
We are available to help you every step of the way. Just call us at (239) 354-0058, fax at (239) 354-0046 or e-mail us
at info@elitemortgageservicesinc.com
Loan Application
Credit Release Form
If you receive an error message when trying to download either of the above forms, you might need to first download
the acrobat reader.
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