What Types of Second Mortgages are Available?
A. Lines of Credit Lines of credit are almost always second mortgages. Lines of credit offer the flexibility of using the money available when you deem necessary, and not being billed unless funds are utilized from the line. Many people use lines of credit for home improvement. For example, if you have a $60,000 line of credit and you initially pay off $20,000 in credit cards, then you are billed only on the initial $20,000 that you utilize. You then have $40,000 available. If you have a bathroom redone six months later and it costs $5,000, then you can write a check for $5,000 and then you are billed now for $25,000 and you still have $35,000 available if you need it.
