Question:

Can I get a fixed rate second mortgage?

Answer:

Fixed rate second mortgages are quite common. Actually, a second mortgage can be a fixed or adjustable rate, and will have a higher interest rate compared to first mortgage loans.

Home equity loans (HELs) and lines of credit (HELOCs) are pretty common alternatives to second home loans, too. HELs are usually fixed rate and HELOCs are most often adjustable rate.

Mortgage companies offer second mortgages with both fixed and adjustable rates.

Second mortgage and home equity loans and lines of credit are often used to:

  • Tap home equity;
  • Consolidate debt - credit cards, car or tuition loans;
  • Do home improvements;
  • Pay medical bills.

Fixed rate 2nd home loans are popular but currently they may be a little expensive and a stand-alone over equity second may be impossible to find. HELOCs are easier to find and currently might be the cheapest of the three. When looking for a second mortgage, consider a HEL or HELOC, as well. They have the same tax advantages as second mortgages and can have greater flexibility to withdraw and pay back, especially HELOCs, as they are offered as credit cards, as well.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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