Should I get a second mortgage or a HELOC loan?
That depends on your goals. A second mortgage is perfect if you only want to borrow a specific amount and pay it back. Second mortgages have a fixed monthly payment and a fixed interest rate.
- For example, you want to finance the installation of a new, total home security system and pay it back with a moderate to large monthly payment.
A home equity line of credit is great for people who want more flexibility in how much they borrow and how frequently. With a SunWest HELOC, you can use the credit line for up to 5 years, paying a percentage of the balance each month. Once the 5-year period ends, the line is closed, and you pay a fixed monthly payment for up to 10 years. HELOCs also have a variable interest rate that can increase a max of 1% every 6 months.
- For example, you will be doing home renovations that will include a lot of projects that you want to do one at a time, using the line as you go.