Difference Between Home Equity Loan, Second Mortgage, Etc?
Q: Hi all, I am thinking of taking out a home equity loan or a home equity line of credit or a second mortgage. My wife and I have lots of confusion on what is what. Is a Home Equity Loan the same animal as a Second Mortgage? Does a Second Mortgage carry a bad name on your credit report? Help.
A: Let me try.... home equity loan is a loan on your home. second mortgage is a home loan that is on the second lien position. I think home equity loan can be the first or the second or third..on and on. lien position. I don't think second mortgage carry a bad name on your credit report. It may increase or decrease your credit score depending on the total debts in relation to your income.
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