Home Equity Loans – second mortgage

Question by MUSCLES: Is a home equity loan and a second mortgage the same thing?
If not, can someone explain how a second mortgage works in laymans terms? Can I take out a second mortgage if I haven’t had my house that long?

Best answer:

Answer by Robert H
These are not necessarily the same thing. Normally, a Home equity line is secured by a second mortgage because the person who is getting the loan already has a traditional first mortgage on their house. However, they are two different things. A Home Equity Line of Credit is a revolving line allow you to borrow up to a maximum amount whenever you request a draw and it is secured by a mortgage on your residence. A second mortgage just refers to the position that the mortgage is in. If there are no other liens on your house than it is a first mortgage, if it is filed second, then it is a second mortgage, and so on. A Home equity rimmed can be secured by a first, second, third, or more mortgage.

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