Whats the difference between a second mortgage & home equity loan?
A second mortgage loan, in this case, refers to an additional mortgage for a second home – to purchase a vacation home, for example. So you end up with two mortgages and two homes. A home equity loan, on the other hand, allows the borrower to refinance their existing mortgage to get cash – or equity – out of their home. It’s still just one mortgage, but it’s been refinanced.
