Understanding Closed-End Second Mortgages

Reported 6 days ago

A closed-end second mortgage is a type of home loan that allows homeowners to borrow against their home equity while keeping their primary mortgage the same. It offers a fixed-rate, lump-sum payment with a repayment schedule, distinguishing it from HELOCs, which permit repeated borrowing. This loan option can help cover significant expenses, but comes with risks like higher interest rates and potential foreclosure if payments are missed. Homeowners need to evaluate their financial goals and may benefit from consulting a financial advisor.

Source: YAHOO

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