Home Equity Line
Home equity lines work like a credit card against the equity in your house. You can take money out and pay it back, keeping the same credit limit. You are charged interest on the outstanding balance with a minimum payment due each month. Eventually after a certain term that may be as long as 10 or 20 years, the line recalculates to a principal and interest payment to be paid off by the end of the total term sometimes 10, 20 or 30 years.
A second trust gives you all the money up front and you can't take it out again as you pay it back. The payment is fully amortized from the beginning with principal and interest due every month until the loan is paid off.
>The information above was provided by Laurie Lee Mead of B.F. Saul Mortgage. You can reach Laurie at email@example.com or 561-573-2122.