Second Mortgage vs HELOC: Understanding the Difference
Homeowners who want to access their equity often choose between a second mortgage and a HELOC. There are pros & cons to each type of loan, so it’s important to understand the differences.
Key Differences
| Feature | Second Mortgage | HELOC |
|---|---|---|
| Interest Rate | Fixed | Variable |
| Funds Access | Lump Sum | Draw As Needed |
| Payment Structure | Fixed Payments | Flexible Payments |