What is a Second Mortgage?
A second mortgage, commonly referred to as a home equity loan, allows you to use the “equity” in your home to secure a loan. Equity refers to the difference between what your home is worth and what you still owe on your first mortgage. Freedom Credit Union offers two varieties of Home Equity Loans: Variable Rate Lines of Credit and Fixed-Rate, Closed-End loans.
Home Equity Line of Credit
For maximum flexibility and the lowest payment, a credit line tied to the equity in your home is a great option. You can borrow money as you need it, and monthly payments are based on 15 year repayment terms. As you pay the balance down, that equity is available for you to borrow again quickly and easily.
Fixed Rate Second Mortgage
If you don’t need the flexibility of a line of credit or prefer a fixed rate on your home equity loan, a fixed rate loan a great option to consider. We offer terms up to ten years at low, fixed rates. With low closing costs and fast turnaround time, we make the process easy!
What are the benefits of a Second Mortgage?
A home equity loan offers many potential benefits, including:
- Tax deductibility – The interest paid on a home equity loan is often tax deductible. Be sure to check with your tax advisor regarding the deductibility of interest.
- One low payment – If you currently have many monthly bills, consider consolidating them into a single loan with one easy payment.
- Lower interest rate – A home equity loan offers very attractive rates. Savings are often dramatic when consolidating higher-interest credit cards.
- Get out of debt faster – If your goal is to get completely out of debt, restructuring your debt with a home equity loan may help. With discipline and patience, you may be surprised at how quickly you can eliminate your debts.
If you would like to explore your options and see which home equity loan is right for you, speak with any of our loan officers; we love to help!
Use this simple loan calculator to calculate a loan payment amount.
Enter the Loan Amount, Interest Rate and Number of Payments below, then select Calculate. Select Reset to clear your entries and begin again.
The Loan Calculator is offered as a convenience to members and is intended to give an approximate payment amount based on the information furnished. Your actual payment amount may be different. Contact the credit union for more information.