2nd Mortgage loans are a great way to access the equity that is sitting in your home.
When you take out a second mortgage using your homes equity, you take the equity amount in one lump sum, and make monthly payments on the borrowed amount. Home equity loans use a fixed rate, and the repayment period can range anywhere from 10-15 years. Many homeowners find comfort in these types of loans because, unlike a line of credit with variable rates, they know exactly what to expect each month.
There can also be a great tax advantage to taking out a home equity loan. In most cases you are able to deduct the amount of interest paid on your loan. There are some catches to this rule, however, so make sure to talk with your tax advisor.
Taking out a second mortgage on your home can be a great move. Remember though, that once you take the equity out, it is gone. Therefore, you should carefully evaluate your need and make sure the time is right.