Can someone explain the difference between a home equity loan and a second mortgage?

Answers:
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Do not give anyone else your personal info in need seeing them in person.

Make sure to price out your loan next to your LOCAL banks and mortgage brokers only.
A lot individuals giving advice on here are also looking to give you a loan (it’s not guidance, its advertising), if they are not local to you and you can’t get to them within 1 hour don’t trickle for it. They say they are licensed in adjectives 50 states, what does that mean? Which state do you have to look within first if something goes wrong? KEEP IT LOCAL; DON'T GET RIPPED-OFF BY SOMEONE IN WHO KNOWS WHERE WHICH YOU WOULD HAVE NO DIRECT ACCESS TO.

Remember Buddha's advice:
"Believe nil, no matter where you read it or who have said it, not even if I have said it, unless it agrees with your own source and your own common sense." You are the only "expert" you can trust: All brokers, and every other loan officer guru giving proposal here with a .com or contact me at the end is "selling" you something (it’s not direction, its advertising). Don't buy "it."

When shopping for a mortgage, here are a few things to do to maximize your savings and time:
1. When asking for a Good Faith Estimate(GFE), tell respectively mortgage originator (lender) what interest rate to use so you can compare apples to apples (rate affects closing costs). This is probably a different thought process for you because you always shop interest rates on a mortgage right? Remember all mortgage originator have identical wholesale interest rates. If you shop alike interest rate among mortgage originators, it levels the playing area and discloses what they want to charge you for their time to originate and close your mortgage. It is similar to shopping for a car. Why does the exact same brand new car vary within cost from one dealership to the next? Some dealers want to be paid more profit than others.
2. Secure Good Faith Estimates from various mortgage originators in a 4 hour time frame (rate and pricing can change daily and even multiple times within one day).
3. Do not compare the prepaids, reserves, escrow, title charges, and government recording section of the estimates; third part fees are not controlled by the mortgage originator.
4. Ask each mortgage originator to bottom the interest rate on a 30 day lock unless you need longer.
5. If the loan allows you to waive escrow (paying taxes & insurance yourself), consent to the mortgage originators know because this will affect closing costs.
6. If refinancing, let the mortgage originator know if you are pulling cash out. A cash-out refinance usually increases closing costs.
Your Biggest Challenge
The mortgage industry today has never be more unethical. The industry has produced several record-breaking years surrounded by a row regarding total origination and as a result, greed is driving the industry. Your biggest challenge is delivery a Good Faith Estimate that is provided to you in "Good Faith"! We spend more time showing consumers how mortgage originator are lying to them in regards to an estimate given! That’s right, lying! “Bait and switch” have become a prominent sales tool in the mortgage industry. Bait you surrounded by with a bogus estimate then switch things after you are hooked. This is so discouraging; bank and so called direct lenders have become some of the worst at this practice. Education is your biggest weapon against this practice. Take the time to fully take to mean closing costs and rates before proceeding.
You should know exactly how much the mortgage originator is getting paid by adjectives sources (no matter where it comes from, it's ultimately coming out of your pocket). Protect yourself by asking for and unloading prior to application and origination a written guarantee stating the TOTAL amount of compensation (YSP, rebates, commissions, kickbacks) that will be received and kept by the mortgage originator. This will help assure that your best interest is kept surrounded by mind.
Originating a mortgage is a service, not a product; compensation should not be based on the loan amount or interest rate.
All ethical, honest, upfront, transparent mortgage originators will be more than prepared to provide you with a written total compensation guarantee in increment to the (GFE) Good Faith Estimate (focus on the word “Estimate” because that is exactly what it is, an estimate of charges) prior to originating your loan.
Traditionall the difference is that a home equity loan is a line of credit so you can use it when you want and the payment is base on what you owe and then you have a maximum flash amount you can draw against. These are typically based on the prime rate although more and more places have lock surrounded by options.

A second mortgage ( again tradtionally) is a fixed loan amount with a fixed rate. So if you rob out a loan for 20k that is what your payment is base on and you can't get more unless you refinance.

As a warning the flea market for these products is very limited if you own a score below 720 or need to borrow over 90% of your homes significance Source(s): 13 years as a loan officer
Same puppy.
There are abundantly of benefits when you have a home equity. First of all, it increases the expediency of your home. Moreover, you can make use of it so you will be able to add to your credit rating should you decide to apply for a home equity loan.nBut do you exactly know how to make correct use of your loan? Just to help you out, here are 4 tips for you. Be careful<!--when you're applying for a home equity loan. If you're familiar near standard bank loans, then you will know how this works. When you're going to apply for a conventional loan surrounded by a bank, you will have to provide collateral, which can next function as your secure deposit. It lowers down the risks of banks within entering on a loan with you.

http://badcreditloans.awardspace.com/How_to_Obtain_a_Bad_Credit_Home_Loan.html

Thus, they can provide you with a mortgage near lower payment terms and interest rates. However, if you ever miss payments on your loan, or you can no longer cope next to them, there's huge possibility that your collateral will be taken away from you. It's the same case beside your home equity loan. If you aren't too careful with it, you will expected lose your own home-->Take note of the length of your loan. You can hold the power to take control over the length of your home equity loan. However, you should be learned with this. Logic can tell you that if you're going to extend your loan for so masses years, you will be enjoying lower interest rates.

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