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Second Mortgagehome Equity Vs Refinance

23 June, 2015



Second Mortgage/Home Equity vs. Refinance

Why should you take out a second mortgage or a home equity line
of credit instead of refinancing?

Well,………You Shouldn’t!!

Why Not?

1. Second Mortgages usually have an interest rant that is twice
or even three times as high as your first mortgage rate. You can
refinance instead and keep a very low rate. In the long run a
second mortgage will just cost you money in interest charges. 2.
Home equity lines of credit are designed for mortgage account
executives (salespeople) to sell you on using it like a credit
card attached to your home. They will try to convince you to use
it over and over again. 3. A refinance loan is better for the
equity in your home. Very few companies will refinance your home
at 100% of it’s value without forcing you to take out a second
mortgage. You don’t want to use 100% of your equity because that
means you no longer have that equity to fall back on in
emergency situations. 4. Second Mortgages and Home Equity lines
of credit are designed to provide account executives
(salespeople) with another tool to sway you into putting another
commission in their pocket. 5. Your equity is a precious thing
and should not be used for unnecessary add ons or impulse buys.
If you don’t need it and there is even a slight chance you can’t
afford it, then don’t get a second mortgage to buy it.

The only reason that I would ever recommend a second mortgage or
a home equity line of credit is in an emergency situation. Only
when there is no other option and you must take out a loan would
I recommend either one of these options.

About the author:

About the Author

Benjamin Ehinger has an extensive mortgage background and has
studied the industry for many years. To learn more about
Refinancing and Second Mortgages visit:


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