Closed-End Second

Offers Financial Flexibility to Homeowners

There are two distinct types of loans that can be taken out as part of a second lien: the Home Equity Line of Credit, and the Closed-End second. This article explains the HELOC and its uses.

Specific Surrounding Closed-End Second Liens

Like a HELOC, the closed-end second lien allows borrowers to take equity out of a mortgage for use in other areas.

Unlike the HELOC, the closed-end second lien sets a fixed interest rate and a specific payment schedule – usually for 30 years. This format offers security for borrowers, giving them a plan that they can reliably execute.

Ways for a Closed-End Second Lien to be Taken Out

The closed-end second lien can be used to take cash out for home improvements, debt consolidation, and more. It can be taken out in the following ways:

 

1) As a “piggy-back” with a first lien.
The piggy-back allows buyers to take a conventional first mortgage with favorable terms, while concurrently giving them a second lien that provides them cash ready for use.

2) As a standalone second lien.
This is particularly beneficial to borrowers with existing favorable loan terms, such as a low, fixed interest rate. The borrower might not want to refinance out of such a loan to take out cash, and instead is able to took out a second mortgage to free up the cash.

Step 1. Get Pre-Approved.

How Does Pre-Approval Work?

Getting pre-approved is as easy as 1-2-3!

1. Create an Account

Creating an account is fast, easy, secure and FREE! Your account enables you to easily modify your loan application and view the status of your loan anytime day or night.

2. Submit Information

When you register for a Loan Center account, you can submit a loan application online and the sensitive information that you provide will be transmitted securely.

3. Get Pre-Approved

Kick your feet up while we crunch the numbers. Pre-approval can be done very quickly if you provide a complete and accurate loan application and supporting documentation.


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