CUSTOMER CARE

 

U.S. Toll-Free:
1.877.GADISH.1

In the Los Angeles Area: 
1.310.497.1233

Email Us and we will respond promptly.

Gadish Financial is an Approved CalPERS Lender
CalPERS California Teacher Home Loans

Gadish Financial is a CalSTRS Loan Provider

  CalSTRS  


Second Mortgages and Home Equity Lines of Credit


A second mortgage is a loan secured by real estate that already has a primary or first mortgage on it. The maximum amount of the second mortgage is determined by the equity in the home. The equity is the difference between what is owed on the home and value of the home.

This is a way to tap into the cash equity of your home.

Many people use a second mortgage to pay off credit card debts or other kinds of debts, seeking to lower their total monthly payments. This may be a way to save money, as the interest from a second mortgage is deductible, where credit card interest is not. If you are making the minimum monthly payments on your credit cards, you'll be paying on them for about 30 years anyways, so the low interest on second mortgages may be a good deal for you. Other reasons people take out second mortgages include home improvements, business loans, etc.

Types of Second Mortgages:

Home Equity Lines of Credit - This type of mortgage is typically an Adjustable Rate Mortgage (ARM). The interest rate on this loan will be fixed for a stated period of time and will then become adjustable for the remainder of the loan. This adjustment is based on changes in a pre-selected index, and will take place according to a pre-defined schedule (generally once a year). Your interest rate and monthly payment will fluctuate based on changes in your index. The most common indices are the Treasury Bill, Certificate of Deposit (CD), London Inter-Bank Offered Rate (LIBOR) and Cost of Funds Index (COFI).

A line of credit is much like a credit card: you have a maximum limit, and you are able to take out any of amount of money up to the amount of the maximum over the life of the loan. You may also pay off the entire amount ahead of schedule, but keep the line open for future withdrawals. Unlike a credit card, though, the line of credit has a fixed life, or length of time to withdraw from and pay off the debt. When the life of the loan is over, you must pay off the entire balance or refinance it.

Return to Top

Fixed Rate Mortgages - These are second mortgages which have a fixed interest rate and a fixed term of a loan. Typical lengths of second mortgages are 15, 20, and 30 years (fully amortizing or with an interest-only period).

Return to Top

Loan Programs

Loan Sizes

Types of Loan Programs

First-Time Homebuyer Programs

CalPERS Member Home Loan Program

CalSTRS (California State Teachers' Retirement System)

Second Mortgages and Home Equity Lines of Credit

     Home Equity Lines of

       Credit

     Fixed Rate Mortgages

JOIN THE GADISH PROGRAMS

Gadish Corporate Mortgage Program / Employee Benefit Program


Gadish Smart Buyer Network

Gadish Realtor Referral Network
 
 

2005-2007 © Gadish Properties, Inc.  Does business as Gadish Financial.  All rights reserved.  Read Legal policy and Privacy policy.


Gadish Properties, Inc. is an equal housing lender.  Licensed by the Department of Real Estate Broker, License number 01505675