HOME EQUITY LINES OF CREDIT AND SECOND TRUST DEEDS
A Home Equity Lines of Credit, also known a a HELOC, is a loan which becomes secured by the equity in your home. A home equity line may or may not be a good solution for your situation. It is important to discuss and understand the pros and cons of borrowing money against the equity in your home.
Usually, but not always, HELOCs are offered with an Adustable Rate Mortgage. It is important to understand the features and benefits of having an Adjustable Interest Rate. Newport Bay Mortgage, Inc. offeres a wide variety of HELOC loans for different types of borrower employment, credit, income, property and equity.
HELOCs can be used for paying off high interest debt, home improvements, college tuition, or just about any other imaginable purpose. They can also be used for the purpose of purchasing or refinancing a property.
A HELOC in many ways is not unlike having a credit card attached to your home. This has been said because just like a credit card, you have access to a specific amount of available credit and you only pay interest on the amount of credit that you decide to use. Once you pay down the balance owed on your HELOC, that amount becomes available when it is needed again.
To Apply for a HELOC using our Secure Online Application, click HERE and type HELOC in the section made available for notes.
A Second Trust Deed that is not a HELOC is different from a HELOC in that it is amortized the same way as a typical first trust deed. You borrow a specific amount of money that is given to you and you make payments based upon the negotiated interest rate over the agreed upon term.
Most Second Trust Deeds have a fixed interest rate and are amortized over a 20 or 30 year term. Many times you are allowed to make payments equal to the amount of monthly interest charges. Most Second Trust Deeds also have a balloon payment feature that requires you to have the loan refinanced or paid off in a number of years that is shorter than the number of years in which the loan is amortized.
Second Trust Deeds usually make the most sense when a person already has a below market interest rate on their existing First Trust Deed but needs access to some of the equity in their home. Sometimes people will borrow their down payment when purchasing their home because they have very little or no money to use as a down payment.
Second Trust Deeds are often used to help a person receive money that is needed quickly for an emergency situation, such as medical bills, or because they are behind in their current mortgage payments. If you or someone that you care about is behind in their mortgage or has received a Notice of Default and is in Foreclosure then click HERE to STOP FORECLOSURE!. We can help save your home and your equity.
