Home equity is the appraised value of your home minus the amount you still owe on your loan.
You should speak with your loan consultant so they can go over this with you, or feel free to contact me and I will let you know if you can do it or not.
My question would be, though, is what are you trying to accomplish?
2nd mortgages are riskier for lenders and thus generally come with a higher interest rate than first mortgages.
This is due if the loan goes into default, the first mortgage gets paid off first before the second mortgage.
Equity determines the quantity and type of second mortgage an individual qualifies for.
The pros might be obvious to you, but there are implications that might not be immediately obvious.In the terms of foreclosure, a second lien holder can start the foreclose process when a homeowner stops making payments.The second lien holder has to satisfy the 1st mortgage balance before they could collect on the 2nd mortgage balance.The mortgage market is awash in programs to help underwater home owners refinance, but if you have a second mortgage or a home equity line that’s causing you to owe more than your home is worth, you could be left high and dry.If the first and second mortgages on your home put together exceed its value, you’re underwater.People First Bank in Joliet and Shorewood has expert mortgage loan officers, like Robyn Edwards, who would be happy to answer your questions.