About Home Loans

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When to Refinance Your Home Equity Line of Credit....5

There are two types of loans that a person can find on their property, including mortgage loans and second mortgages. Find out how long the terms are for second mortgages with help from a financial specialist in this free video on home loans and money management.

Part of the Video Series: Home Equity Lines of Credit
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Video Transcript

Hi my name is Matt McKillen, I'm with Innovative Financial Group. I've been asked the question what is a home loan. There are two types of loans you can find on your property. There's a first mortgage loan which is generally the loan that you used to purchase your home. It can be anywhere from a 15 to a 30 year term. Most customers desire a fixed rate when they take a loan to purchase their property. The other type of home loan is a second mortgage. A second mortgage is generally either a home equity line of credit, which is an open ended line of credit on your property, or it can also be a fixed rate loan similar to the first mortgage. On average, the second mortgage programs are usually on a 10 or 15 year term of repayment. Also, first mortgage loans generally do have a lower rate than the second mortgages do. So when you're shopping for a mortgage, generally the best choice is a fixed rate for your home loan and afterwards if you need to put in a pool or do home improvements or maybe consolidate debts with your equity, your best choice for that would be a home equity loan. Again my name is Matt McKillen and I'm with Innovative Financial Group.

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